JPMorgan Chase’s quarterly profit drops as loan loss provisions eclipse investment banking

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CEO Jamie Dimon maintained his guarded tone on the U.S. economy, despite stock markets reaching record highs and the Federal Reserve beginning a long-awaited cycle of rate cuts

profit dropped in the third quarter as a bigger provision for potential loan defaults offset gains from investment banking, the bank said on Friday.

Still, CEO Jamie Dimon maintained his guarded tone on the economy, despite stock markets reaching record highs and the Federal Reserve beginning a long-awaited cycle of rate cuts. Net interest income – the difference between what a lender earns on loans and pays on deposits – grew 3 per cent to $23.5-billion.

 

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