JP Morgan gave the markets something to cheer about on Friday, kicking off the banking results season with better than expected results.

The large US bank has reported third quarter earnings per share (EPS) of $1.40, 20 cents above the $1.20 that the market consensus was anticipating. The bank reported a profit of $5.7bn compared to $4.3bn generated in the year-ago period.

Revenue rose by 6% to $25.9bn compared to $23.76bn a year earlier and the $24.12bn expected by the market.

JP Morgan Chief Executive Jamie Dimon said that the US housing market "has turned the corner" and that the bank would be reducing the amount set aside to cover losses from mortgages. Dimon also said that there has been continued momentum and a strong performance across all businesses. Revenue rose in every business line.

"Importantly, we believe the housing market has turned the corner. In our
Mortgage Banking business, we were encouraged that credit trends continued to modestly improve, and, as a result, the Firm reduced the related loan loss reserves by $900 million ... We are acting responsibly to help home owners and prevent foreclosures, offering nearly 1.4m mortgage modifications and completing 578,000 since 2009. Credit trends in our credit card portfolio continued to improve, and the wholesale credit environment remained stable," Dimon said.

"I am proud of the momentum we are seeing throughout our businesses. The exceptional power of our franchise is evident in the solid foundation of our fortress balance sheet and the tremendous capacity of JPMorgan Chase to support our customers and communities around the world while making significant investments for the future."


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