Its revenue in the September quarter fell only 2% year over year compared to Bank of America’s (NYSE: BAC) revenue drop of 11%. Shares of third US largest bank Wells Fargo (NYSE: WFC) plunged 10% after the bank reported a 14% year over drop in September quarter revenue. JPMorgan stock jumped 9.44% in the past six months.
Investors ignored a bank fine of $920 million on market manipulations
JPMorgan is among the eight US banks that were fined by regulators this year for breaching different anti-money laundering policies and violating other banking guidelines. The regulators have imposed a fine of almost $1 billion on JPMorgan for violations. Regulators imposed a $3.9 billion fine on Goldman Sachs while Wells Fargo is liable to pay $3 billion. The total fine on US banks stood around $8.53 billion in 2020, accounting for 74.89% of the total $11.39 billion bank fines globally.
Strong financial performance supports JPMorgan stock
JPMorgan has topped third-quarter revenue and earnings estimates by $960 million and $0.73 per share, respectively. Although it’s net interest income fell 9% year over year to $9 billion, its earnings per share of $2.92 grew sharply from earnings of $1.38 per share in the previous quarter. The bank has dropped its credit-loss provisions to only $611 million in the September quarter compared to the consensus estimate for $2.88 billion. Credit-loss provisions stood around $10.47 billion in the second quarter. In addition, its trading revenue jumped 30% year over year to $6.6 billion.
