Is the economy on the rebound? Who knows, but it did get at least a little boost J.P. Morgan’s announcement that its profits rose 23% higher than many analysts expected thanks to provisions for losses on mortgages, credit cards and other consumer loans fell $5.8 billion.
According to the AP, Third-quarter net income climbed to $4.42 billion, or $1.01 a share, from $3.59 billion, or 82 cents, in the same period a year earlier, the New York-based company said today in a statement. Twenty two analysts surveyed by Bloomberg estimated adjusted earnings of 88 cents a share.
Some of the bank’s success can be attributed to unemployment rates remaining steady.
he U.S. jobless rate has held steady or fallen after peaking at 10.1% in October 2009, according to U.S. government data. It was 9.6% in September.
“You’re not really getting a lot of new people falling into unemployment, which stabilizes the credit-card portfolios,” said Paul Miller, a former examiner for the Philadelphia Federal Reserve Bank and an analyst at FBR Capital Markets. “Credit continues to be flat this quarter.”
Wow, that all sounds really boring, but what does it mean?
Well, to me, it means that something is headed in the right direction. Sure, the profits of one bank doesn’t mean we’re out of the woods, but it’s definitely a good sign.
Hopefully banks will get their crap together. I need to buy new TVs for all the rooms in my house. HD ones. Like, yesterday.