JPMorgan Chase & Co., the second- biggest U.S. bank by assets, said profit rose 76 percent, more than analysts estimated, as a reduction in provisions for soured mortgages and credit-card loans buoyed results.
Second-quarter net income climbed to $4.8 billion, or $1.09 a share, from $2.72 billion, or 28 cents, in the same period a year earlier and from $3.33 billion in the first quarter, the New York-based company said today in a statement. The per-share earnings compared with an average estimate for adjusted earnings of 71 cents projected by 22 analysts surveyed by Bloomberg.
“It’s great to see credit finally confirmed, that the trend is improving,” Gary Townsend, president of Hill-Townsend Capital LLC in Chevy Chase, Maryland, a hedge fund that specializes in financial firms, said in a Bloomberg Television interview. “The earnings estimates for this company are going up,” said Townsend, who owns JPMorgan shares.
Chief Executive Officer Jamie Dimon, 54, who has kept the bank profitable by relying on investment-banking revenue, said the results were “still unacceptable” because consumer lending charge-offs and late payments remain high. The company cut provisions for bad loans in the retail-banking business by $2 billion in the second quarter as investment-banking profit dropped 44 percent from the first quarter.
Poor Larry Langford, got left holding the bag!
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