JPMorgan Chase & Co., the second largest bank in the US, has reported an 11% drop in earnings for the fourth quarter. The bank said that the disappointing figures for the period October to December 2004 were down to costs associated with its merger with Bank One and falling investment bank results.
The New York based bank achieved a net income of $1.67 billion, or 46 cents a share, compared with $1.86 billion, or 89 cents per share a year earlier. The reduced income was affected by an 18% fall in investment banking profits and $650 million of costs relating to the $58 billion merger with Chicago-based Bank One.
On the more positive side retail banking profits more than doubled to $775 million in the quarter.
Figure for the quarter, not including the Bank One costs, was an income of $2.3 billion, or 64 cents a share. This figure was still below the 68 cents a share predicted by city analysts.
JPMorgan Chase’s results compared poorly to that of some of its big rivals. A number of other large US banks reported on Tuesday with Bank of America grabbing the headlines for its impressive profits growth. Bank of America delivered record quarterly profits up 41%, while Wells Fargo & Co. achieved a 10% increase in profits and U.S. Bancorp 8%.