(15 July 2011 – Australia) Investment banking operations are generating surging revenue and profits for JPMorgan as it reported a second-quarter profit rise of 13 percent.As the first big bank to report results, investors were focused on JPMorgan’s revenue growth. The bank sported a 7 percent overall increase, well above expectations and likely to inflate hopes for its peers’ reports due in the next week.
Revenue hit US$27.41 billion (A$19.96 billion), topping Wall Street’s expectations of US$25.13 billion.
More than half the revenue growth came from the investment bank, while asset management was another sizable contributor. Total profit for the period was US$5.43 billion.
On its mortgage-related issues, the bank said it was booking a US$1.3 billion charge for additional litigation reserves.
Chief executive Jamie Dimon told reporters he expected foreclosures to remain high for up to another year and a half and housing prices to fall more.
Loans were up in the commercial-bank, the investment-bank and business-banking segment of the retail business.