JPMorgan: Powering on through the bad weather
Banner year for CIB helps pay for big provisions, while bank sticks to strategy of investing for growth.
JPMorgan’s revenues of $90.3 billion for the first nine months of 2020 were 4% ahead of the same period in 2019, however profits fell by 39% and return on tangible common equity came down to 11% from 19% for the first three quarters of 2019.
Taking $19.4 billion of provisions for credit losses – compared with a more normal $4.2 billion in the first nine months of 2019 – will do that to your results.
But JPMorgan is still producing better returns in a terrible year than most large European banks manage in a great one. At the end of November its shares traded at 1.9 times tangible book value.
At the end of September deposits were 31% higher than at the same point in 2019.