JP Morgan Earnings Rise On Tax Benefit

(RTTNews) - Earnings at banking giant JP Morgan Chase (JPM) jumped more than 20% compared to last year, despite a decline in revenue. The firm's bottom line received a boost from about $2 billion in tax benefits.

The top line was hurt by lower revenues from its corporate and investment bank division. This included lower revenue from its mortgage banking unit.

There was also a notable earnings decline in the firm's commercial banking business.

The company reported a quarterly profit of $6.8 billion, up from $5.6 billion in the same period last year. Earnings per share advanced to $1.68 from $1.35 in the same period last year.

A $1.7 billion profit in the firm's corporate unit bolstered the bottom line, thanks to a tax benefit of $1.9 billion. In total, the company recorded $2.2 billion in tax benefits during the quarter, or $0.57 per share.

This was partially offset by $1 billion in legal expense, which brought down earnings by $0.26 per share.

Revenue declined compared to last year. The top-line figure retreated 6 percent to $23.5 billion, compared to $25.1 billion in the third quarter of 2014.

The company said its provision for credit losses fell double-digits from last year, retreating 10 percent to $682 million. This was the result of lower net charge-offs.