JPMorgan profit falls but beats forecasts
JPMorgan Chase & Co said on Thursday that second-quarter profit fell more than 50 percent, hurt by $1.1 billion in write-downs at its investment bank, but the results beat expectations and its shares rose nearly 5 percent.
The third-largest U.S. bank, which bought Bear Stearns Cos in May, had until now mostly sidestepped the credit crisis that has seen massive write-downs for Wall Street firms.
The $1.1 billion of write-downs were mainly for mortgages and leveraged-buyout loans. Competitors such as Citigroup and Merrill Lynch have taken much larger write-downs in recent quarters.
The bank’s revenue was higher than forecast, bolstered by market share gains by its investment bank as well as growth in retail financial services.
“JPMorgan is obviously much better positioned in a very tough environment,” said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.
The better-than-forecast earnings, which helped lift stock market futures, came a day after Wells Fargo & Co also beat expectations, sending financial stocks soaring cash advance loan no fax. Later on Thursday Merrill Lynch is reporting earnings and on Friday Citigroup, JPMorgan’s troubled larger rival, will.
Net income dropped to $2 billion, or 54 cents per share, from $4.23 billion, or $1.20 a share, a year earlier.
Analysts on average had expected earnings of 44 cents a share, according to Reuters Estimates.
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