JP Morgan Chase has reported a net income of $4.8bn and earnings per share $1.09 for the second-quarter of 2010, compared with $2.7bn and earnings per share $0.28 in the second quarter of 2009.
Net revenue was $6.3bn, compared with $7.3bn in the prior year. Net income was $1.4bn, down 6% compared with the prior year. JP Morgan Chase said that the results reflected lower revenue and higher noninterest expense, predominantly offset by a benefit from the provision for credit losses.
Net interest income was $4.8bn, down by $213m, or 4%, due the impact of lower loan and deposit balances, partially offset by a shift to wider-spread deposit products.
Jamie Dimon, chairman and CEO of the JP Morgan Chase, said: “Our net income increased to $4.8bn, including the benefit from a $1.5bn reduction of loan loss reserves – which we do not believe represents normal ongoing earnings – partially offset by a charge of $550m for the UK bonus tax.
“Although we are gratified to see consumer-lending net charge-offs and delinquencies decline, they remain at extremely high levels and therefore returns in our consumer-lending businesses are still unacceptable. As a result, these businesses did not meet expectations nor generate satisfactory returns on capital for our shareholders. It is too early to say how much improvement we will see from here.
“We saw solid performance in our other businesses. In particular, our wholesale businesses experienced reduced net charge-offs that led to reductions in loan loss reserves, and are currently seeing credit costs which reflect the increasingly healthy condition of our wholesale clients.”