JPMorgan earns $4.8 billion in 2nd quarter

[July 15, 2010]  NEW YORK (AP) -- JPMorgan Chase & Co. said Thursday its second-quarter net income soared 77 percent to $4.8 billion as a slowdown in losses from failed loans helped offset a difficult spring in trading and investment banking.

JPMorgan Chase, the first of the big banks to report earnings for the April-June period, easily surpassed analysts' expectations as it earned $1.09 a share, up from $2.7 billion, or 28 cents a share, a year earlier. Analysts had forecast a profit of 67 cents per share in the just-ended quarter.

JPMorgan Chief Executive Jamie Dimon said the company reduced its reserves to cover failed loans by $1.5 billion in this quarter but that loan losses "remain at extremely high levels."

"It is too early to say how much improvement we will see from here," Dimon said.

Dimon also warned of possible "unintended consequences" to the bank's business from the financial regulatory overhaul awaiting congressional approval.

JPMorgan Chase has been one of the strongest banks as it weathered the financial crisis and recession, so its performance shouldn't be taken as a sign of how well other banks did during the quarter.

JPMorgan's shares rose 46 cents, or 1.14 percent, to $40.81, in pre-opening trading.

[Associated Press; By STEVENSON JACOBS]

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