JPMorgan reports financial results

December 6, 2010
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JPMorgan Chase & Co. (NYSE: JPM) reported third-quarter 2010 net income of $4.4 billion, an increase of 23 percent compared with $3.6 billion in third quarter 2009. Earnings per share were $1.01, compared with 82 cents in 2009.

"Our third-quarter net income of $4.4 billion was the result of the good underlying performance of our businesses,” said CEO Jamie Dimon. “The Investment Bank delivered solid earnings while maintaining its No. 1 ranking in Global Investment Banking Fees. Retail Financial Services reported strong mortgage loan production. Card Services increased sales volume by 7 percent compared with the prior year, and positive credit trends assisted in delivering improved results. Commercial Banking reported record revenue, while Asset Management had strong net inflows of $38 billion this quarter.

"We are pleased to report a continued overall decline in credit costs, although our mortgage and credit card portfolios continued to bear very high net charge-offs,” Dimon said. “Our mortgage delinquency trends remained relatively flat compared with the prior quarter, and we expect mortgage credit losses to remain at these high levels for the next several quarters. If economic conditions worsen, mortgage credit losses could trend higher. With respect to our credit card portfolio, delinquencies and net charge-offs continued to improve, and we reduced loan loss reserves by $1.5 billion this quarter as estimated losses declined. We expect credit card net charge-offs to continue to improve next quarter.

“Our fortress balance sheet continued to strengthen, ending the quarter with a strong Tier 1 Common ratio of 9.5 percent. We believe that the quality of our balance sheet will position us well for the eventual implementation of new capital standards being developed by bank regulators. Our total firm-wide credit reserves declined to $35.0 billion, resulting in a firm-wide coverage ratio of 5.1 percent of total loans.

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