JPMorgan 3Q profit down 3.5%, revenue rises slightly
JPMorgan Chase & Co.'s (JPM) third-quarter profit fell 3.5% to $4.26 billion, or $1.02 a share, on revenue of $24.37 billion, while recording higher net income from its mortgage production and servicing segment. The banking giant earned $4.42 billion, or $1.01 a share, on revenue of $23.4 billion a year earlier. The company's mortgage production and servicing segment reported income of $205 million for the quarter, up significantly from $25 million last year. Excluding losses on the repurchase of loans, the company's production revenue hit $1.3 billion, down 10% from a year earlier, but up 35% from the previous quarter. Production expenses hit $497 million, up $63 million, or 15%, due to a move to higher-cost retail origination through the company's branch network and direct to consumer business. Meanwhile, repurchase losses on mortgages hit $314 million in the quarter, significantly improved from last year when repurchase losses hit $1.5 billion. On the mortgage servicing side, JPMorgan Chase recorded a pretax loss of $153 million, narrower than $494 million a year earlier. Servicing revenue declined 10% from last year, hitting $1.2 billion. The company attributes this decline to a drop in the number of third-party loans serviced. Write to Kerri Panchuk.