Litigation costs push JPMorgan into Q3 loss; shares gain

|About: JPMorgan Chase & Co. (JPM)|By:, SA News Editor

EPS of $1.42 excludes litigation expense and reserves of $7.2B (vs. less than $1B a year ago), or $1.85 per share and also excludes the benefit of reserve releases of $992M, or $0.26 per share.

Dimon: "The Board continues to seek a fair and reasonable settlement with the government on mortgage-related issues and one that recognizes the extraordinary circumstances of the Bear Stearns and WAMU transactions, which were undertaken at the request or encouragement of the U.S. Government."

Consumer & Community Banking revenue of $11.1B is off 13% Y/Y. Tipped weakness on mortgage banking doesn't disappoint, with noninterest revenue off 27%. Total mortgage originations fell 17% from Q2, but that's all refi business as purchase originations rose 15%.

Investment banking revenue of $8.2B is off 2% Y/Y, but includes a $397M DVA charge.

Commercial banking revenue of $1.7B is off 7% Y/Y.

Basel Tier 1 common ratio of 10.5%

CC at 8:30 ET.

JPM +1.4% premarket.