Summary of Highlights from J.P. Morgan's Q3 Earnings Call

J.P. Morgan Chase and Company's JPM held their Q3 earnings conference call today. The firm had a lot to discuss, including the large net loss of $318M on the back of a litigation expense of $9.2B, of which they are facing large premiums and penalties. CEO James Dimon commented, “We didn't anticipate that we'd be paying anything for prior losses for Bear Stearns. I tell people even the Bear Stearns member, I think it was $80B of bonds were made good which would have failed that day had they gone bankrupt and we did ask, we weren't completely stupid, we did ask the SEC for- and only the SEC for would they please agree not to take enforcement actions against JPMorgan for things that happened at Bear which of course they couldn't do outright, but they did say they'd take in consideration the circumstances in which the transaction took place.” CFO Marianne Lake reported, “We still expect that if you look at the third quarter run rate adjusted it's about $650 million down from just over $700 million in the second quarter. That trend is moving in the right direction.” Below are some highlights from J.P. Morgan's Q3 earnings conference call:

• Marianne Lake commented ““Businesses show double-digit growth in key drivers and market share gains in consumer and CIBA and banking end market.”
• JPMorgan leads the FDIC survey with highest deposit growth for the second year in a row and a growth rate of more than twice the industry average. Average deposits were up $40B YoY, an increase of 10%
• Ended quarter with 5600 branches, 19000 ATMs, 1900 chase private client locations.
• JPMorgan deployed 32B gross in new investments this quarter alone.
• Record credit card sales volume of $107B, up 11% YoY and outperforming the industry.
• Active mobile customer base grew 30% YoY.
• Revenues down 50% QoQ.
• Total loss of $6.2B and EPS of –($1.59).
• Combined consumer businesses generated $2.7B of net income for the quarter on 11B of revenue and ROI of 23%.
• Loan utilization on the wholesale side was relatively flat between 30-31%.