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Acquisition costs causes drop in JPMorgan Chase income

Acquisition costs causes drop in JPMorgan Chase income

(20 January 2005 – USA) JPMorgan Chase’s fourth quarter income dropped by 10.5 percent to US$1.7 billion compared with US$1.9 billion 12 months earlier. The bank, which is the second largest in the US, said it had put aside US$650 million for costs and accounting charges caused by its acquisition of Bank One.

JPMorgan Chase bought Bank One, the then fifth largest bank in the US in January 2004 for US$58 billion.

President and chief operating officer Jamie Dimon said the bank was aiming to save US$3 billion from the merger by reducing head count and cutting costs.

The bank cut employment by 6000 in 2004 but said it could add more than 7000 during the course of 2005, which would push the total workforce up to 168,000.

JPMorgan Chase chief executive William Harrison said the 2004 Q4 result "reflected a mixed performance".
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