JPMorgan
profit falls 8 percent as securities trading income drops
Send a link to a friend
[July 15, 2014]
(Reuters) - JPMorgan Chase & Co,
the biggest U.S. bank by assets, reported an 8 percent decline in
second-quarter profit as a pullback in trading of bonds and
currencies by big institutions hit revenue in its securities trading
business. |
Net income fell to $5.99 billion, or $1.46 per share, from $6.5
billion, or $1.60 per share, in the same quarter of 2013.
The results for both periods included special items.
Analysts on average had expected earnings of $1.29 per share,
according to Thomson Reuters I/B/E/S. It was not immediately clear
if the reported results were comparable.
JPMorgan shares were up 1.8 percent at $57.31 in premarket trading.
Up to Monday's close, the stock had risen just over 2 percent since
the start of the year, slightly underperforming the KBW bank stock
index.
"Toward the end of the second quarter, we saw encouraging signs
across our businesses including an uptick in wholesale utilization,
strengthening pipelines in our commercial and business banking
segments, and some improvements in markets activity," Chief
Executive Jamie Dimon said in a statement.
Revenue from fixed-income and equity markets fell 15 percent to $3.5
billion in the quarter ended June 30 compared with the year-earlier
quarter.
JPMorgan executives have said that institutional investors seem to
be shying away bonds because of a lack strong opinions about future
moves in interest rates and currencies.
Bankers maintain that volumes will rebound eventually, but some
investors worry that much business may be lost forever due to
regulatory changes designed to make the banking system safer.
[to top of second column] |
JPMorgan, the second largest U.S. mortgage lender after Wells Fargo
& Co, said its profit from mortgage lending fell 38 percent to $709
million, while mortgage application volumes dropped 54 percent to
$30.1 billion.
Overall U.S. mortgage lending volumes have fallen for the past 15
months as mortgage rates rise. Demand for loans was also hit by a
weaker spring selling season compared with last year.
Wells Fargo, which reported last Friday, said its mortgage revenue
dropped 39 percent in the quarter.
(Reporting by David Henry and Tanya Agrawal; Editing by Ted Kerr)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright
2014 Reuters. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed.
|