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| JP Morgan quarterly profits fall | JP Morgan quarterly profits fall |
| (about 1 hour later) | |
| JP Morgan Chase has reported a 12.5% drop in first quarter net income of $2.1bn (£1.41bn) compared with $2.4bn the same time a year ago. | JP Morgan Chase has reported a 12.5% drop in first quarter net income of $2.1bn (£1.41bn) compared with $2.4bn the same time a year ago. |
| The downturn and rising unemployment have forced it to set aside more money against losses in consumer banking. | The downturn and rising unemployment have forced it to set aside more money against losses in consumer banking. |
| Meanwhile revenue increased 45% to $25bn from $16.9bn, mostly due to the bank's takeover of Washington Mutual. | Meanwhile revenue increased 45% to $25bn from $16.9bn, mostly due to the bank's takeover of Washington Mutual. |
| JP Morgan shares rose 2.6%, or 67 cents, in New York trade to $33.23, after the better than expected results. | |
| JP Morgan has largely avoided write-downs on subprime mortgages that have hit its peers in the past 18 months. | JP Morgan has largely avoided write-downs on subprime mortgages that have hit its peers in the past 18 months. |
| "Importantly, we generated record firm-wide revenue; record revenue and net income in the investment bank; and benefited from underlying growth in retail banking," said chief executive Jamie Dimon. | "Importantly, we generated record firm-wide revenue; record revenue and net income in the investment bank; and benefited from underlying growth in retail banking," said chief executive Jamie Dimon. |
| JP Morgan bought most of the assets of failed lender Washington Mutual for $1.9bn last year. It also bought struggling Bear Stearns last May. | JP Morgan bought most of the assets of failed lender Washington Mutual for $1.9bn last year. It also bought struggling Bear Stearns last May. |
| 'Maintaining efforts' | 'Maintaining efforts' |
| Net profit at its investment banking division came in at $1.6bn, compared with a loss of $87m in the first quarter of 2008. | Net profit at its investment banking division came in at $1.6bn, compared with a loss of $87m in the first quarter of 2008. |
| Its retail financial services unit also recorded a profit of $474m, compared with a loss of $311m for the same period a year ago. The bank said this was largely as a result of the "positive impact" of the Washington Mutual acquisition. | Its retail financial services unit also recorded a profit of $474m, compared with a loss of $311m for the same period a year ago. The bank said this was largely as a result of the "positive impact" of the Washington Mutual acquisition. |
| However, it reported a loss of $547m in card services, driven by a "higher provision for credit losses". The division made a $609m profit for the same quarter a year ago. | However, it reported a loss of $547m in card services, driven by a "higher provision for credit losses". The division made a $609m profit for the same quarter a year ago. |
| "We are maintaining our efforts to help the economy recover. We continue to lend and have extended approximately $150bn in new credit to consumer and corporate customers during the first quarter," Mr Dimon added. | "We are maintaining our efforts to help the economy recover. We continue to lend and have extended approximately $150bn in new credit to consumer and corporate customers during the first quarter," Mr Dimon added. |
| 'Confident' | 'Confident' |
| Looking ahead to the rest of 2009, Mr Dimon said: "We are confident that even a highly adverse economic scenario would not compromise our overall strength and stability." | Looking ahead to the rest of 2009, Mr Dimon said: "We are confident that even a highly adverse economic scenario would not compromise our overall strength and stability." |
| Shares in JP Morgan rose about 3% in pre-market trading immediately after the results, which were ahead of expectations, were announced. However, they later slipped back into negative territory. | Shares in JP Morgan rose about 3% in pre-market trading immediately after the results, which were ahead of expectations, were announced. However, they later slipped back into negative territory. |
| Experts said the markets may be buoyed by the figures. | Experts said the markets may be buoyed by the figures. |
| "In terms of the broad market impact, I think people are looking for health out of the financial sector," said Dan Haus, analyst at Miller Tabak & Co in New York. | "In terms of the broad market impact, I think people are looking for health out of the financial sector," said Dan Haus, analyst at Miller Tabak & Co in New York. |
| "JPMorgan is one of the healthiest banks in the country, and how they perform will be used as a benchmark to determine a healthy bank from an unhealthy bank." | "JPMorgan is one of the healthiest banks in the country, and how they perform will be used as a benchmark to determine a healthy bank from an unhealthy bank." |
| Payback available | |
| JP Morgan is one of several banks to have received money from the US Treasury Department under the Troubled Asset Relief Program. | |
| It received $25bn in taxpayer funds from the US government in October last year, and Mr Dimon said the bank had the money to repay the money. | |
| "We could pay it back tomorrow," said Mr Dimon, who added that the bank was waiting for guidance from the government on when it could do so. | |
| Earlier this week, Goldman Sachs raised $5bn in a stock sale to help pay back the $10bn it received from the government. |