JPMorgan: Powering on through the bad weather
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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.

Viswas Raghavan, chief executive of EMEA and co-head of global investment banking at JPMorgan

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.