At the end of the quarter, the bank had US$20.5 billion set aside for credit losses.
Those improvements and a 9% gain in investment banking fees led to the most profitable quarter of 2020.
The COVID-19 pandemic has wreaked havoc on the global economy, and bank investors have been waiting to see how much that translates into losses from soured loans.
JPMorgan Chase (NYSE:JPM) posted earnings that beat analysts' estimates for the top and bottom line.
"Our third quarter results reflect the impact of aggressive monetary and fiscal stimulus on the USA economy", CEO Charlie Scharf says in the earnings statement.
Chief Financial Officer Jennifer Piepszak said in September that the bank's third-quarter trading revenue would probably jump 20% from previous year.
India’s Mumbai faces widespread power outage, train services hit
Services between Churchgate and Borivali stations stand suspended at the moment. "Commuters are requested not to panic", it said. Adani Electricity tweeted: "There is a major power grid failure due to which supply is affected in most areas of Mumbai ".
With the recession crushing consumer and business confidence, and with it demand for loans, Citi reported its first outright fall in revenue this year, down 7% to US$17.3 billion in the third quarter.
The key question for the quarter: Whether American banks would show that they're largely done setting aside money for loan defaults tied to the pandemic.
The employees' actions were outside of their work responsibilities, the company said. That appears to be the case at JPMorgan, the biggest USA bank by assets, which had a $611-million provision in credit costs in the period, compared to $10.5 billion in the previous quarter.
Even allowing for the impact of a US$400 million fine related to its mistaken transfer of US$1 billion to lenders of Revlon Inc, Citi's total net income for common shareholders came in at US$1.40 per share. Analysts were expecting it to fall 6% from a year ago to $13.4 billion.
The New York-based bank said Tuesday that it earned a profit of $9.44 billion, or $2.92 a share, in the July to September period.