JP Morgan Chase hit by write-downs
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.