JPMorgan reports 31% rise in quarterly profit as trading reboundsFriday 12 July 2013 18.15
JPMorgan Chase & Co has today reported a 31% rise in quarterly profit as trading revenue rebounded and the biggest US bank by assets set aside less money to cover bad loans.
It said its net income rose to $6.50 billion, or $1.60 per share, in the second quarter ended June 30 from $4.96 billion, or $1.21 per share, a year earlier.
Last year's quarter included the vast majority of the losses of more than $6.2 billion on derivatives positions that were so large that hedge funds had referred to the trader handling them as the "London Whale".
The bank said today that provision for credit losses fell 78% to $47m.
Revenue from fixed income and equities rose 18% in the quarter compared with a year earlier. The corporate and private equity division, which a year ago lost $1.78 billion after-tax because of the London Whale debacle, lost $522m in the latest quarter.
Mortgage banking income, which comes from making home loans and servicing existing mortgages, fell 14% to $1.1 billion as a refinancing wave subsided and interest rates rose.
JPMorgan is the second largest US mortgage lender after Wells Fargo with an 11% market share.
Its shares have risen 25% so far this year, helped by growing confidence that the US economy is on the road to a solid recovery. However, the stock has been volatile in recent weeks because of concern that higher interest rates will erode the value of bank assets before they generate new revenue from lending.
Today's results are the first the bank has released since chairman and chief executive Jamie Dimon overwhelmingly won a shareholder referendum in May on whether he should hold both posts.