J.P. Morgan Chase profit falls 53 % on loan losses
Published July 17, 2008 by CSBJ Staff
The Associated Press
J.P. Morgan Chase reported a 53 percent profit decline today as defaults rose in mortgages and other loans, but the bank’s results were better than the market anticipated.
The bank’s shares gained about 5 percent in pre-market trading. On the heels of Wells Fargo & Co.’s stronger-than-expected results released Wednesday, investors appear more confident that the banking sector, while struggling, will be propped up by some of its healthier players.
J.P. Morgan Chase & Co. earned $2 billion, or 54 cents per share, in the April to June period, down from $4.23 billion, or $1.20 per share, in the same timeframe last year.
Analysts surveyed by Thomson Financial had predicted, on average, a profit of 44 cents share.
JPMorgan Chase took a nearly $3.5 billion provision for credit losses, and lost more than half a billion dollars due to Bear Stearns, the ailing investment bank it bought in March with the help of the government.
But hardy growth in the business of providing traditional banking services and loans to individuals and companies around the world gave J.P. Morgan a boost. The commercial banking and treasury and securities segments both saw record earnings and revenue.
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