George S. May Business Blog

JPMorgan posts big profits in Q2

Isn’t it interesting that suddenly after the government imposes strict regulations on companies like JPMorgan Chase and Goldman Sach, suddenly -ta da!- they can pay back the TARP money.

(Huffington Post) – JPMorgan Chase & Co. posted a 36 percent jump in second-quarter profit Thursday, easily surpassing Wall Street expectations as strength in its core consumer and investment banking businesses offset a jump in credit losses.

The New York-based banking giant, the second big financial institution in a week to release upbeat earnings news, reported net income of $2.72 billion, or 28 cents per share, up 36 percent from $2 billion, or 53 cents per share, a year earlier. Revenue rose 39 percent to $25.62 billion from $18.4 billion.

Earnings per share fell despite an increase in profit because the company had more stock outstanding in the most recent quarter ending June 30.

Analysts forecast earnings of 4 cents per share on revenue of $25.89 billion for the quarter.

The profit came despite a $1.1 billion charge, or 27 cents a share, as JPMorgan repaid in full $25 billion in loans it received from the government as part of the Troubled Asset Relief Program, or TARP. The bank was also hit by a 10-cents-a-share FDIC special assessment penalty.

CEO Jamie Dimon said he was “pleased” by the results, even as the company’s latest numbers were weighed down by higher credit costs, particularly in the company’s consumer lending and credit card businesses.

The bank said it set aside $9.7 billion for credit losses, up from $4.29 billion a year earlier but down from the first quarter’s $10 billion.

JPMorgan’s upbeat report followed strong earnings earlier Tuesday from Goldman Sachs Group Inc.

From here forward, I do not care what JPMorgan does, just as long as they pay back taxpayers’ money. If they continue to reap profits, great! That will just be another testament as to why the bank bailout is working.

Related posts:

1. Bank of America still in shambles — Bank posts $9.6 billion Q3 credit loss Two taxpayer bailouts, equating to $45 billion, later, Bank of America still can not get it together. America’s largest bank, BofA, posted a big third...


2. JPMorgan Chase & Co. to undergo senior management changes JPMorgan Chase & Co. made a huge announcement today, in that, it will be shuffling the senior management duties of its investment banking and asset...


3. SEC smacks JPMorgan Chase with $700 million fine My, oh my, this is quite a large fine. I wonder though, should JPMorgan fail to pay the fine on time, will the SEC hit...


4. AIG Posts 4th Quarter Loss Perennial leader on most people’s list of incorrigible corporations, AIG, announced on Friday a fourth-quarter loss of $8.9 billion, or $65.51 per share, as the...


5. Chrysler Pleased with 0 Profits While the last few years have been brutal for the business prospects of Chrysler, this year is a bit of a turnaround. While the profits...