JPMorgan's net jumps 67 pct on investment banking [View All]

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JPMorgan's net jumps 67 pct on investment banking

April 13, 2011 8:52 AM ET.

By PALLAVI GOGOI

NEW YORK (AP) - JPMorgan Chase & Co. reported a 67 percent jump in first quarter earnings Wednesday on solid growth in investment banking fees and a drop in losses in its credit card portfolio.

The New York bank earned $5.6 billion, or $1.28 per share, compared with $3.3 billion, or 74 cents a share in the same period last year. The profits at JPMorgan, the first bank to report earnings, were way ahead of the $1.15 per share analysts surveyed by FactSet were expecting.

Revenue fell to $25.2 billion from $27.7 billion in the same period last year. The slump in real estate continued to weigh heavily on JPMorgan's results. The bank increased its provision for mortgage-related losses by $1.1 billion.

Jamie Dimon, the CEO of JPMorgan, said in a statement that the bank's mortgage losses were "extraordinarily high," adding: "Unfortunately, these losses will continue for a while."

JPMorgan Chase & Co.'s profits included $2 billion from reducing its credit card loan reserves. Delinquency fell among the bank's credit card customers, allowing JPMorgan to lower its estimates of future losses.

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The stronger than expected results sent JPMorgan's stock up 1.8 percent to $47.49 in pre-market trading. Other major banks also rose. Bank of America Corp. rose 1.3 percent to $13.63, and Citigroup Inc. rose 1.1 percent to $4.60.

http://money.msn.com/business-news/article.aspx?feed=AP&date=20110413&id=13304446