JP Morgan profit jumps
(14 October 2010 – USA) Lower loan losses in JP Morgan’s retail and credit card units have resulted in a jump in the bank’s quarterly profits.
The second largest United States bank by assets third-quarter net income rose to US$4.4 billion (A$4.4 billion), or US$1.01 a share, from US$3.6 billion, or 82 cents a share in the year earlier period.
We are pleased to report a continued overall decline in credit costs, although our mortgage and credit card portfolios continued to bear very high net charge-offs, commented JP Morgan chief executive Jamie Dimon.
Mr Dimon said he expected mortgage credit losses to remain at high levels for 'the next several quarters' as customers struggled to repay debt, but also said defaults on credit cards were likely to fall in the next quarter.
Analysts had on average predicted a profit of 90 cents a share, according to Thomson Reuters I/B/E/S.
JPMorgan shares were up 1 percent at $40.80 in pre-market trading on Wednesday.
We are pleased to report a continued overall decline in credit costs, although our mortgage and credit card portfolios continued to bear very high net charge-offs, commented JP Morgan chief executive Jamie Dimon.
Mr Dimon said he expected mortgage credit losses to remain at high levels for 'the next several quarters' as customers struggled to repay debt, but also said defaults on credit cards were likely to fall in the next quarter.
Analysts had on average predicted a profit of 90 cents a share, according to Thomson Reuters I/B/E/S.
JPMorgan shares were up 1 percent at $40.80 in pre-market trading on Wednesday.
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