JPMorgan announces $4.8bn profits for second quarter

16 July 2010

JPMorgan profits reached $4.8 billion during the second quarter of 2010, the bank has announced.

According to the financial services provider, the figure, which was equivalent to $1.09 per share, represented an increase on the $2.7 billion seen in the same period of 2009.

The net income included $1.5 billion taken from JPMorgan’s loan loss reserves, while the figure was also “partially offset by a charge of $550 million for the UK bonus tax”, Jamie Dimon, chairman and chief executive officer at the bank explained.

Commenting on the overall performance of the bank, Mr Dimon said: “Many challenges and uncertainties remain which may result in unintended consequences for our clients, the markets and our businesses.

“With a need for global regulatory coordination and hundreds of rules to be written, increased focus is critical in order to implement these reforms in a way that protects consumers and the competitiveness of the US financial system, while ensuring the flow of safe and sound credit.”

He added that although the number of customers defaulting on loans and making late payments fell, “they remain at extremely high levels”.

Further figures from JPMorgan revealed its tier one common ration was recorded at 9.6 per cent by the end of the quarter.

The bank also provided clients with almost $700 billion worth of capital in the form of loans across the first half of 2010.

By Jim Ottewill

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