JPMorgan Chase earns $3.3B in Q1 on strong trading

[April 20, 2010]  NEW YORK (AP) -- JPMorgan Chase & Co. said Wednesday its profit rose 57 percent in the first three months of the year as strong trading revenue helped the bank offset continuing losses on consumer loans.

JPMorgan Chase, the first of the big banks to report earnings for the January-March period, said it earned $3.3 billion. The company again added to its reserves for failed loans during the quarter, but its investment banking division and other businesses enabled it to more than overcome the ongoing weakness in lending.

JPMorgan CEO Jamie Dimon offered a more upbeat assessment on the future than he has in the past, saying the economy still faces challenges but is showing "clear and broad-based improvements."

The bank said its nonperforming loans, those that are in default or close to being in default, totaled $2.7 billion, up $946 million from a year earlier but a $763 million improvement from the final three months of 2009.

JPMorgan earned 74 cents per share, easily topping analysts' expectations of 64 cents. Total revenue reached $28.2 billion for the quarter, surpassing forecasts.

Investors were pleased with the report. They bid JPMorgan Chase stock up 1.5 percent in pre-opening trading.

[Associated Press; By STEVENSON JACOBS]

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