JP Morgan posts record profit in third quarter

JP Morgan Chase & Co., the biggest U.S. bank by assets, reported a record profit for the third quarter on Friday, as mortgage refinancing surged and commercial lending expanded. The New York based company said its net income rose to 5.71 billion U.S.dollars, or 1.40 dollars per share, 34 percent up from a year-ago 4.26 billion dollars, or 1.02 dollars per share. Wall Street was expecting the bank to earn 1.20 dollars per share. Revenue rose 6 percent year-on-year to 25.9 billion dollars, beating expectations of 24.4 billion dollars. Revenue from mortgage loans jumped 29 percent in the third quarter thanks to low interest rates and government help that encouraged homeowners to refinance. "Importantly, we believe the housing market has turned the corner," JP Morgan's CEO Jamie Dimon said in a written statement. About the surprising 6-billion-dollar trading loss, the bank didn't give further details, only noted that it recorded 449 million dollars in losses in the third quarter in its chief investment office related to the derivatives loss. JP Morgan's results kicked off the reporting season for U.S. banks, delivering investors the first look of an expected stronger quarterly performance. JP Morgan's shares added 13 cents to 42.23 dollars shortly after the opening.