JPMorgan Profit Rose 13% in Second Quarter

JPMorgan Chase & Co.'s (JPM) second-quarter income rose 13 percent as the bank collected higher fees from equity and debt underwriting in its investment banking business. The bank also cut losses in its credit card portfolio.

The New York bank reported Thursday that it earned $5.4 billion, or $1.27 per share in the three months ending in June. That was above the $1.22 per share that analysts surveyed by FactSet had forecast. JPMorgan earned $4.8 billion, or $1.09 per share, in the same period a year ago.

Investment banking income jumped 49 percent, to $2.1 billion, as the bank collected higher fees. The bank set aside $2.6 billion for compensation to its investment bankers, down from $2.9 billion in the same period last year.

JPMorgan's lending business faltered in the second quarter. Despite low interest rates, the bank lost $454 million in its auto and mortgage loan operations, compared with income of $364 million in the prior year.

Even in credit cards, a bright spot in recent quarters, JPMorgan's customers weren't spending as much, reflecting a lack of confidence in the economy. The total amount of credit card debt held by JPMorgan fell 12 percent compared with a year ago as its customers spent less. JPMorgan reduced its loan loss reserves by $1 billion as more people paid their bills on time.

JPMorgan's stock rose 2 percent to $40.57 in pre-market trading Thursday.

Copyright 2011 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

Increase your money and finance knowledge from home

Introduction to ETFs

The basics of Exchange Traded Funds and why ETFs are hot.

View Course »

Investing in Emerging Markets

Learn to invest in a globalized world.

View Course »

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:
mmcdonald2k

Register to win a free copy of Eye In The Sky Screener. A winner will be announced on the first day of each month. It is the screener professional traders rely on.

Visit www.eyeintheskyscreener.com to register for your free copy today. Simply click the "Request Your Free Copy" button to enter.

"Trading Information @ Your Fingertips!"
Michael McDonald

July 23 2011 at 12:15 AM Report abuse rate up rate down Reply