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JPMorgan Chase Profit Drops 8% In Slow 2Q

This article is more than 9 years old.

JPMorgan Chase said net income fell in the second quarter to $6 billion.

The nation's largest bank reported second quarter earnings were down from last year as net income fell $500 million from last year. Earnings per share were $1.46 on revenue of $25.3.

The good news is JPM beat Street estimates of $5.4 billion in net income, or $1.29 per share on revenue of $23.76 billion.

JPM Chairman and CEO said of the results, "Despite continued industry-wide headwinds in Markets and Mortgage, the firm has continued to deliver strong underlying performance."

One area seeing continuing slowdown is mortgages where originations were down 66% from last year to $16.8 billion. Net income in mortgage banking was $709 million, a decrease of $433 million from the prior year. Net revenue was $2.3 billion, a decrease of $772 million.

The investment bank also saw a slowdown with net income falling 31% $2.0 billion. Revenue from trading was $5.9 billion, down 12% from last year, equity markets revenue dropped 10% to $1.2 billion on lower derivatives revenue, JPM said.

Credit cards and auto also fell. Net income dropped 33% to $840 million driven by higher provision for credit losses, higher noninterest expense and lower net revenue, the bank said.

The bank's Consumer & Business Banking segment saw a boost as net income came in at $894 million, a 28% jump compared with last year. Net revenue in the segment was $4.6 billion, up 7% compared with the prior year. Net interest income was up 6% compared and noninterest revenue was $1.8 billion, an increase of 9%.

Dimon is hoping the second half of the year is stronger, saying, "Toward the end of the second quarter, we saw encouraging signs across our businesses including an uptick in wholesale utilization, strengthening pipelines in our commercial and business banking segments, and some improvements in markets activity."

He added, "While it is too early to assume that this momentum will continue, we have confidence in the long-term growth of the economy."