JP Morgan Chase hit by write-downs
by Kay Murchie
Investment banking giant, JP Morgan Chase, revealed that second-quarter profits fell 52% as it suffered a £550 million ($1.1 billion) loss on mortgage-related write-downs.
Net income at the third-largest US bank fell to $2 billion compared with $4.23 billion a year earlier.
Revenue fell by 3% to $18.4 billion, above analysts expectations of $16.6 billion in turnover for the second quarter.
So far, the bank has posted over $10 billion of write-downs and losses on mortgage related assets but compared to its rivals, this is a marginal amount.
JP Morgan bought Bear Stearns in May which nearly collapsed when it got into trouble when other banks refused to lend it money due to concerns that it had too much exposure to the US sub-prime mortgage market.
Following the news, which was seen as a positive results announcement from a US bank, the Dow Jones industrial average was 71.6 points higher by mid morning.
Discuss this in the Finance Markets forums
Story link: JP Morgan Chase hit by write-downs
Related financial stories to: JP Morgan Chase hit by write-downs:
- JPMorgan Chase announces $5.1 billion sub-prime write-down
- JP Morgan Chase and Credit Suisse announce job losses
- Morgan Stanley forced to write-down £1.1 billion
- UBS Dismiss Write-down Rumours
- US banks to reveal additional sub-prime write-downs
Next: Barclays secures £4.5bn »
Visited 1952 times, 1 so far today
No Comments »
No comments yet.
RSS feed for comments on this post.
Leave a comment
Tags: Bear Stearns, JP Morgan Chase, profits, write-downs
