News Column

JPMorgan Has Strong 2nd Quarter

July 12, 2013
JPMorgan Chase

The world's second-largest bank by assets, US-based JPMorgan Chase, published strong second quarter results Friday, indicating it had bounced back from a derivatives trading debacle last year.

The bank's income grew 31 percent to 6.5 billion dollars on total revenue of 26 billion dollars, 13 per cent more than the same period last year, when the bank was hardest hit by trading losses.

"Our earnings reflected strong performance across our businesses," bank chief Jamie Dimon said in New York.

Investment banking was responsible for the growth, with profits there rising 19 per cent to 2.8 billion dollars on revenue that was up 10 per cent to 9.9 billion dollars.

In contrast, retail banking revenue dropped 3 percent to 12 billion dollars, bringing profits down 6 per cent to 3.1 billion dollars.

Dimon said the demand for new loans was growing slowly. "However, we continue to see broad-based signs that the US economy is improving," he said.

The bank said it could again access about 1.5 billion dollars it had set aside for bad loans because customers are again paying reliably, Dimon said.

In 2012, a London subsidiary racked up 6.2 billion dollars in derivatives losses, two-thirds of which were recorded in the second quarter of 2012.

JPMorgan Chase is the first major US bank to present its financial results. In the coming week, other heavyweights such as Goldman Sachs, Bank of America and Citigroup will follow.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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