JPMorgan's First-Quarter Profit Swells 67%

JPMorganJPMorgan Chase & Co. (JPM) reported a 67 percent jump in first quarter earnings Wednesday on solid growth in investment banking fees and a drop in losses in its credit card portfolio.

The New York bank earned $5.6 billion, or $1.28 per share, compared with $3.3 billion, or 74 cents a share in the same period last year. The profits at JPMorgan, the first bank to report earnings, were way ahead of the $1.15 per share analysts surveyed by FactSet were expecting.

Revenue fell to $25.2 billion from $27.7 billion in the same period last year.

The slump in real estate continued to weigh heavily on JPMorgan's results. The bank increased its provision for mortgage-related losses by $1.1 billion.

Jamie Dimon, the CEO of JPMorgan, said in a statement that the bank's mortgage losses were "extraordinarily high," adding: "Unfortunately, these losses will continue for a while."

JPMorgan Chase & Co.'s profits included $2 billion from reducing its credit card loan reserves. Delinquency fell among the bank's credit card customers, allowing JPMorgan to lower its estimates of future losses.

Investment banking revenue fell to $8.2 billion from $8.3 billion in the prior year. However, much of the profits were generated from a 23 percent increase in investment banking fees to $1.8 billion. That included record debt underwriting fees of $971 million, up 33 percent from the prior year, and a 41 percent increase in advisory fees to $429 million.

The portion of JPMorgan's customers who were late by 30 days on their mortgage payments fell to 6.2 percent, compared with 7.3 percent a year earlier. However, its home equity loan portfolio had losses of $720 million, while its sub-prime mortgage losses were $186 million.

In the quarter, the bank lost $1.1 billion from increased costs to service mortgages, an expense of $650 million due to costs from foreclosures and mortgage repurchase losses of $420 million.

The stronger than expected results sent JPMorgan's stock up 1.8 percent to $47.49 in pre-market trading. Other major banks also rose. Bank of America Corp. rose 1.3 percent to $13.63, and Citigroup Inc. rose 1.1 percent to $4.60.

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Major Fraud Alert

The entire Federal Banking System under FirstGov has been "Consumed" and "Levied" by way of a Maryland State Circuit/District Court Ruled “Appropriation and Garnishment” of all Future Earnings prior to and after 2004 against Bank Of America by way of the F.D.I.C. Regulations Prohibiting failing Banks from Merging with other failing Banks between the Dates of 08/04/08 and 10/09/09.

Bank of America violated the 21st Century Act: Final Amendments to Regulation CC Section:

seeking reimbursement of Credit, Loan, and Finance Balances as a "Bank Entity" and not a "Nonbank Consumer" as specified on Pages 85 and 86.

The person they sued through a LLC. Debt Collection Company and Law Firm was the "World Fortune Owner" who "Counterclaimed" and won.

Now all Contracts of any Corporations (Including Employment) under the "Controlling Interest" of any Investment Bank Worldwide are "Null and Void", and are also under the stipulated Rules and Regulations of an "Closely-held S Corporation rendering all Employed under Legal Actions against “Domination”, and also means that "No Corporation can hold Shares" officially making every Stock Exchange on the Planet a "Ponzi Scheme" by default.

Businesses owned by the States (Public Corporations) are being sold Stock Shares by Corporations also under the Federal Banking System in this Worldwide "Ponzi Scheme". The World Fortune Company Merrick Inc. Sweden is dissolving Millions and Billions of Dollars from "All Levels of Government"in the U.S. of Financing based upon Years of "negligent inaction" involving this case.

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May 29 2011 at 12:14 AM Report abuse rate up rate down Reply

How much of these profits has been from ripping off the American consumer/taxpayer? I bet ALOT. J.P. Morgan Chase and CEO Jamie Demon can honestly be called modern day BANKSTERS. How many lawsuits are in the pipeline against Chase???.....ALOT.....

April 13 2011 at 3:10 PM Report abuse +3 rate up rate down Reply

And did the interest rates and CD rates go up????

April 13 2011 at 11:48 AM Report abuse +2 rate up rate down Reply

does anyone really know whether their reserve for bad debt covers,and what their 10year bonds are worth

April 13 2011 at 11:26 AM Report abuse rate up rate down Reply

I guess those new bank fees are really paying off.

April 13 2011 at 10:10 AM Report abuse +3 rate up rate down Reply

As long as Obama keeps sending stimulus money to them this will happen

April 13 2011 at 10:00 AM Report abuse +1 rate up rate down Reply
1 reply to marine1942's comment

And when did Obama ever send banks stimulus money? Back in the fall of 2008 it was Bush writing checks for bank bailouts. Do you really think we forget that it was Bush that left the natl debt at $11 trillion.

April 13 2011 at 10:10 AM Report abuse rate up rate down Reply