JP profits despite credit costs
(20 April 2009 – USA) Major US bank, JPMorgan, has recorded a US$2.1 billion profit for the first quarter of 2009, down on the same time last year due largely to credit costs, but better than expected.
JPMorgan reported first-quarter 2009 net income of US$2.1 billion (A$2.9 billion), compared with net income of US$2.4 billion in the first quarter of 2008.
The bank said that it generated a record revenue figure of US$26.9 billion and a significant pre-tax, pre-provision profit of US$13.5 billion.
This, however, was cut back by credit costs of US$10 billion, including US$4 billion which was added to reserves.
JPMorgan reported a record net income in the Investment Bank of US$1.6 billion in the first quarter compared with a loss of US$2,364 billion in the last quarter of 2008 and with a loss of US$87 million in the first quarter of 2008.
In Retail Banking, net income was US$474 million for the quarter, down by US$150 million, or 24 percent on last quarter, but better than the US$311 million loss for the first quarter 2008.
The bank benefited from the merger with Washington Mutual, with integration reportedly on track. The merger drove Retail Banking growth in deposits by 62 percent and in checking accounts (cheque accounts) by 126 percent.
Card Services recorded a loss of US$547 million, while Commercial banking recorded a profit of US$338 million, down on last quarter but up on the same period last year.
Jamie Dimon, Chairman and Chief Executive Officer, said that the bank was in a position to repay emergency loans from the US Government immediately and was seeking guidance on how to do so.
The bank said that it generated a record revenue figure of US$26.9 billion and a significant pre-tax, pre-provision profit of US$13.5 billion.
This, however, was cut back by credit costs of US$10 billion, including US$4 billion which was added to reserves.
JPMorgan reported a record net income in the Investment Bank of US$1.6 billion in the first quarter compared with a loss of US$2,364 billion in the last quarter of 2008 and with a loss of US$87 million in the first quarter of 2008.
In Retail Banking, net income was US$474 million for the quarter, down by US$150 million, or 24 percent on last quarter, but better than the US$311 million loss for the first quarter 2008.
The bank benefited from the merger with Washington Mutual, with integration reportedly on track. The merger drove Retail Banking growth in deposits by 62 percent and in checking accounts (cheque accounts) by 126 percent.
Card Services recorded a loss of US$547 million, while Commercial banking recorded a profit of US$338 million, down on last quarter but up on the same period last year.
Jamie Dimon, Chairman and Chief Executive Officer, said that the bank was in a position to repay emergency loans from the US Government immediately and was seeking guidance on how to do so.
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