J.P. Morgan reports profit growth
16 July 2010 New York
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J.P. Morgan has reported second-quarter 2010 net income of $4.8 billion, compared with $2.7 billion in the second quarter of 2009. Earnings per share were $1.09, compared with $0.28 in the second quarter of 2009.
Jamie Dimon, chairman and chief executive officer, commented on the quarter: "Our net income increased to $4.8 billion, including the benefit from a $1.5 billion reduction of loan loss reserves - which we do not believe represents normal ongoing earnings - partially offset by a charge of $550 million for the U.K. bonus tax."
Continuing on the businesses, Dimon added: "Although we are gratified to see consumer-lending net charge-offs and delinquencies decline, they remain at extremely high levels and therefore returns in our consumer-lending businesses are still unacceptable. As a result, these businesses did not meet expectations nor generate satisfactory returns on capital for our shareholders. It is too early to say how much improvement we will see from here.
"We saw solid performance in our other businesses. In particular, our wholesale businesses experienced reduced net charge-offs that led to reductions in loan loss reserves, and are currently seeing credit costs which reflect the increasingly healthy condition of our wholesale clients."
Jamie Dimon, chairman and chief executive officer, commented on the quarter: "Our net income increased to $4.8 billion, including the benefit from a $1.5 billion reduction of loan loss reserves - which we do not believe represents normal ongoing earnings - partially offset by a charge of $550 million for the U.K. bonus tax."
Continuing on the businesses, Dimon added: "Although we are gratified to see consumer-lending net charge-offs and delinquencies decline, they remain at extremely high levels and therefore returns in our consumer-lending businesses are still unacceptable. As a result, these businesses did not meet expectations nor generate satisfactory returns on capital for our shareholders. It is too early to say how much improvement we will see from here.
"We saw solid performance in our other businesses. In particular, our wholesale businesses experienced reduced net charge-offs that led to reductions in loan loss reserves, and are currently seeing credit costs which reflect the increasingly healthy condition of our wholesale clients."
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