JP Morgan Blows Out Earnings, US Futures Tear Higher

Jamie Dimon

Photo: ap

U.S. futures are in the green and rising, after being lackluster not too long ago, after JP Morgan reported earning that blew past expectations.JPM earned $1.09 in Q2 vs. expectations of just $0.67.

Notably, the quarter benefited from declining charge-offs and delinquencies in the consumer business, which is an encouraging sign for the economy. Nevertheless, JP Morgan says the consumer-lending businesses remain weak.

Check out 12 stocks moving in the pre-market after these JPM earnings >


JPMorgan Chase & Co. today reported second-quarter 2010 net income of $4.8 billion, compared with $2.7 billion in the second quarter of 2009. Earnings per share were $1.09, compared with $0.28 in the second quarter of 2009.

Jamie Dimon, Chairman and Chief Executive Officer, commented on the quarter: “Our net income increased to $4.8 billion, including the benefit from a $1.5 billion reduction of loan loss reserves – which we do not believe represents normal ongoing earnings – partially offset by a charge of $550 million for the U.K. bonus tax.”

Continuing on the businesses, Dimon added: “Although we are gratified to see consumer-lending net charge-offs and delinquencies decline, they remain at extremely high levels and therefore returns in our consumer-lending businesses are still unacceptable. As a result, these businesses did not meet expectations nor generate satisfactory returns on capital for our shareholders. It is too early to say how much improvement we will see from here.

“We saw solid performance in our other businesses. In particular, our wholesale businesses experienced reduced net charge-offs that led to reductions in loan loss reserves, and are currently seeing credit costs which reflect the increasingly healthy condition of our wholesale clients.”

See the JPM release here.



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