JPMorgan Posts Better-Than-Expected $2.1B Profit

Or JPMorgan Posts $2.1B Profits, Beats Expectations
By Newser Editors and Wire Services
Posted Apr 16, 2009 8:27 AM CDT
Employees unveil a new sign for one of Chase's new 708 bank branches Monday, March 30, 2009, in Los Angeles, Calif.    (AP Photo/John Hayes)
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(Newser) – JPMorgan Chase earned $2.14 billion in the first quarter, it said today, thanks to a boost in trading activity and deposits. The profit was 10% lower than last year, but better than expected, boosting hopes for a turnaround. Like other banks, JPMorgan is still seeing loan defaults increase—credit costs amounted to $10 billion, but the company is benefiting from a jump in mortgage refinancing and deposits, as well as low interest rates.

The firm says it earned 40 cents per share on record revenue of $26.9 billion; analysts had predicted a profit of 32 cents per share, according to Thomson Reuters. “We are confident that even a highly adverse economic scenario would not compromise our overall strength and stability—or our ability to enhance our franchises,” said CEO Jamie Dimon.