34% quarterly profit for JPMorgan Chase

JPMorgan Chase on Friday reported a third-quarter profit of$5.7 billion, up 34 percent from a year ago, as the bank showed signs of strength in consumer and corporate lending. The bank surpassed expectations with earnings of $1.40 a share, compared with$1.02 a year earlier. JPMorgan's revenue rose to $25.9 billion, up 6 percent from 2011. As the nation's largest bank, JPMorgan is often considered a barometer of how rivalinstitutions and the greater economy will fare. With growth across virtually all the bank's core businesses, the earnings could bode well for the rest of the industry. In particular, JPMorgan's earnings were buoyed by the mortgage business, which is benefiting from a variety of government initiatives.The company originated $47 billion of new home loans and refinancing, up 29percent from the sameperiod a year earlier. Earnings in the mortgage unit increased by 57 percent."We believe the housing market has turned the corner," said Jamie Dimon, the bank's chief executive, in a release. Still, Mr. Dimon tempered expectations for the market. While emphasizing the growth in the bank's mortgage business, he warned that defaults could continue, along with foreclosures. Mr. Dimon, who has been an outspoken critic of overreachingregulation from Washington, also noted that the housing market could rebound more quickly if lawmakers made certain moves. "I would hope for America's sake we start to fix the things that make the mortgage underwriting too tight," Mr. Dimon said on a conference call with reporters.