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JPMorgan Revenue Falls on Trading, Profit Misses Estimates

JPMorgan Chase & Co., the biggest U.S. bank, said revenue fell 6.4 percent in the third quarter, driven by a slump in trading and mortgage-banking results. Shares slipped in late New York trading.

While net income rose 22 percent to $6.8 billion, the New York-based firm said Tuesday in a statement, adjusted earnings per share, excluding a tax benefit and other items, were $1.32. That missed the $1.38 average estimate of 29 analysts surveyed by Bloomberg.

The results at JPMorgan, the first of the big U.S. lenders to report, show pressure is still high at Wall Street firms to cut expenses as volatile markets and the continuation of record-low U.S. interest rates erode profit. Though the bank shrank noninterest costs 2.7 percent to $15.4 billion, that still wasn’t enough keep up with the drop in revenue.

“We saw the impact of a challenging global environment and continued low rates reflected in the wholesale businesses’ results,” Chief Executive Officer Jamie Dimon, 59, said in the statement. “We continue to focus on our commitments, optimize our balance sheet and manage our expenses.”

JPMorgan shares fell 1.5 percent to $60.60 as of 5:27 p.m. in extended trading in New York.

Cutting Jobs

Firmwide net revenue was $23.5 billion in the third quarter, down from $25.1 billion a year earlier. The bank has cut its...