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Legal expenses lead to 3Q net loss for Chase

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JPMorgan Chase & Co. on Oct. 11 reported a net loss of $400 million for the third quarter of 2013, compared with net income of $5.7 billion in the third quarter of 2012.

In its quarterly earnings release, the company said third-quarter results included legal expenses of $9.2 billion and a benefit from reserve releases of $1.6 billion. Excluding those items, third-quarter net income would have been $5.8 billion, the company said.

Jamie Dimon, the company's chairman and CEO, said in the earnings release, "While we had strong underlying performance across the businesses, unfortunately, the quarter was marred by large legal expense. We continuously evaluate our legal reserves, but in this highly charged and unpredictable environment, with escalating demands and penalties from multiple government agencies, we thought it was prudent to significantly strengthen them.

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

Other highlights of the quarter as listed by the company include:

  • Consumer and community banking deposits up 10 percent
  • Client investment assets at a record $179 billion, up 16 percent
  • Credit card sales volume at a record $107 billion, up 11 percent
  • Merchant processing volume of $185.9 billion, up 14 percent