Of Special Interest

15th July 2011

JPMorgan profits boosted loan loss reductions and Investment banking

JPMorgan Chase reported Q2 net income of $5,431m (€3,859m £3,405m ¥430.9bn Y35.128bn) and first half income of $10,986m (€7,806m £6,888m ¥871.6bn Y71.059bn). This represented increases of 13% and 35% on the year ago performance. The not so good news is that pre-provision profit was DOWN 46% and 71% respectively.


Results by division for Q2 2011 2010 Change
$m $m %
Investment Bank 2,057 1,381 49
Retail Financial 582 1,042 -44
Card Services 911 343 >
Commercial Banking 607 693 -12
Treasury and Securities 333 292 14
Asset Management 439 391 12
Corporate and Private Equity 502 653 -23
______________________
Total 5,431 4,795 13

The fall in retail was despite a gain of $587m from the reduction loan loss provisions and stems from a $1,356m increase in operational expense said to be primarily due to the foreclosure issues. The big gain credit card profit likewise has to be seen in the context of a $1.4bn reduction in credit card provision. This leaves the one big growth area, unaffected by loan loss reduction comparisons as Investment Banking.