JPMorgan Chase posts better-than-expected profit

[April 16, 2009]  NEW YORK (AP) -- JPMorgan Chase says it earned $2.1 billion, thanks to rising deposits and lower borrowing rates. The profit was 13 percent lower than last year, but better than expected.

JPMorgan has not posted a quarterly loss since the financial crisis began.

Like other banks, JPMorgan's loans are still seeing defaults increase. Credit costs amounted to $10 billion.

But the company is benefiting from a jump in mortgage refinancing and deposits, as well as low interest rates. When a bank can borrow cheaply, it can profit more from lending.

JPMorgan says it earned $2.1 billion in the first quarter, or 40 cents per share. That's down from $2.4 billion, or 67 cents per share, a year ago. But analysts predicted a profit of 32 cents per share.

[Associated Press]

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