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JPMorgan Chase Reports $380 Million Loss As Legal Costs Jump

JPMorgan Reports $380 Million Loss
Reuters
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(Reuters) - JPMorgan Chase & Co

The bank posted a loss of $380 million, or 17 cents per share, in the third quarter, compared with net income of $5.71 billion, or $1.40 per share, a year earlier.

Excluding litigation expense and reserve release, the company posted a profit of $5.82 billion, or $1.42 per share.

Analysts on average had expected earnings of $1.20 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the results were comparable.

JPMorgan's shares were up 1.9 percent at $53.50 in premarket trading.

The prospect of additional legal expenses have been weighing on JPMorgan and CEO Jamie Dimon for more than a year as the company has come under intense scrutiny from regulators following the disclosure of derivatives loss in May 2012.

"While we expect our litigation costs should abate and normalize over time, they may continue to be volatile over the next several quarters," Dimon said in a statement.

JPMorgan shares were up 19.45 percent this year through Thursday to $52.52, lagging the 23.44 percent rise in the KBW bank stock index in the same period.

(Reporting by David Henry in New York and Tanya Agrawal in Bangalore)

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Before You Go

Bankrupt Companies That Gave Executives Bonuses
General Motors(01 of07)
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Two years after General Motors' bailout, executives received around $32.8 million in bonuses, ABC reports. (credit:AP)
Kodak(02 of07)
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After Kodak declared bankruptcy earlier this year, executives were paid around $13.5 million in bonuses, the Associated Press reports. (credit:AP)
Solyndra(03 of07)
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Earlier this year, Solyndra gave their executives bonuses on top of huge pay raises after the company declared bankruptcy, the Washington Times reports. (credit:AP)
RG Steel(04 of07)
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Managers at RG Steel were offered around $20 million in bonuses if they could find buyers after the company went bankrupt, The Herald Star reports. (credit:AP)
Lear Corporation(05 of07)
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The Lear Corporation sought permission to give their executives $20.6 million in bonuses last January, the Wall Street Journal reports. (credit:Getty Images)
LightSquared(06 of07)
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Last month, LightSquared got court approval to give bonuses to four executives shortly after declaring bankruptcy, Bloomberg reports. (credit:AP)
Tribune Co.(07 of07)
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Last year, Tribune Co. got permission to give executives millions of dollars in bonuses if they completed certain financial goals after the organization had filed for bankruptcy. (credit:Getty Images)
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