JPMorgan expects another $1bn hit from scandals

JPMorgan reported net income of $5.6bn for the three months to September, compared with a loss of $380m

The JPMorgan Chase & Co. headquarters in New York. (Reuters)

JPMorgan Chase, America’s biggest bank, set aside a further $1bn (£630m) yesterday to cover the legal costs of investigations by regulators including those into the alleged rigging of foreign exchange markets.

The provisions emerged as the bank reported a better performance in the third quarter than in the corresponding, disastrous quarter last year.

But a new technical problem, following a recent cyber attack which hit 76 million accounts, meant that the bank’s earnings appeared about two hours before schedule on the investment website shareholder.com.

JPMorgan reported net income of $5.6bn for the three months ended 30 September, compared with a loss of $380m a year earlier, when it took a hit of $7.2bn to settle allegations related to mortgage-related instruments before the financial crisis.

Meanwhile, Citigroup reported better-than-expected third-quarter profits but said it would pull out of consumer banking in 11 less profitable markets. Citigroup’s adjusted net profit for the quarter rose to $3.67bn from $3.26 bn a year earlier.