NEW YORK (AFP) - US banking giant JPMorgan Chase and Co reported third quarter profits of over one billion dollars, but profits still fell short of Wall Street's expectations, largely on costs related to its merger with Bank One Corp.
Net profit came in at 1.4 billion dollars in the third quarter compared with 1.6 billion dollars a year earlier, it said.
Net earnings per share moderated to 39 cents a share from 78 cents for the same period of 2003.
Excluding the Bank One merger costs of 741 million dollars, net profits would have hit 2.2 billion dollars or 60 cents. Wall Street had forecast earnings of 74 cents, according to Thomson First Call.
"I am pleased with the progress to-date on merger integration, but current operating results were below expectations primarily due to weak trading results in the Investment Bank," JPMorgan Chase chairman and chief executive William Harrison said in a statement.
Revenues rose 64 percent to 13.6 billion dollars.
"Relative to our forecast, weak fixed income trading results was the biggest variance. Additionally, expenses came in a tad higher than expected," Lehman banking analyst Jason Goldberg said.
JPMorgan Chase's fixed income revenues fell 23 percent to 1.1 billion dollars, reflecting "lower trading results," it said.
The bank's stock fell 1.23 dollars, or 3.2 percent, to 36.75 dollars in the wake of its earnings release, but the wider market was also lower in Wednesday trading.
Costs from its July merger with Bank One comprised of 462 million dollars and charges of 279 million "to conform with accounting policies."
James Dimon, JPMorgan Chase president, said the merger nonetheless remains firmly on track.
"Progress on integration during the quarter included the decision on technology insourcing, conversion of 20 percent of the Bank One credit card portfolio in August," Dimon said.
JPMorgan Chase made no mention of its reported talks with British-based Cazenove to create a joint venture that could in effect combine the US giant with a 181-year-old independent investment bank.