JPMorgan earnings fall
JPMorgan earnings fall
Thursday 17th July 2008
JPMorgan Chase has posted an earnings fall of 53 per cent, as the credit crunch continues to bite Wall Street.The US investment bank saw earnings fall to $2 billion (£1 billion) – down on $4.23 billion a year ago.
The rush acquisition of Bear Stearns in March saw JPMorgan report a net loss for the second quarter of $540 million.
The investment bank arm had write-offs of $1.1 billion – mainly form mortgages and leveraged-buyout loans.
The firm has taken a $3.46 billion provision for credit losses, which included a $1.3 billion build in reserves.
Jamie Dimon, JPMorgan chairman, said: "Our earnings were down significantly due to the unfavourable credit environment and market conditions."
"However, the firm overall continued to maintain solid underlying business momentum."
Despite the fall in earnings, the markets have responded favourably to the results, with the JPMorgan pre-market price up 4.9 per cent.
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