JP Morgan exceeds expectations by reporting $2bn profit

| April 16, 2009 | 0 Comments

JP Morgan Chase have followed fellow investment bank Goldman Sachs by beating analysts’ expectations for its first quarter results.

JP Morgan said profits for the first three months of 2009 were $2.1 billion (£1.41 billion), resulting in a rise of 2.6% in its share price today on Wall Street.

The US bank is one of many to have received financial assistance from the US Treasury Department under the Troubled Asset Relief Program (Tarp).

According to chief executive Jamie Dimon, the bank has the money to repay the loan. It received $25 billion last autumn, while Goldman Sachs received $10 billion but has announced plans to raise $5 billion from investors to repay the loan.

Mr Dimon said he is awaiting instructions from the Government as to when it can repay its loan.

In the meantime, revenue for the first quarter grew from $17.8 billion to $26.9 billion, while net income for the quarter was down 10% to $2.1 billion as a growing amount of US citizens defaulted on their loans.

JP Morgan acquired Washington Mutual’s assets for $1.9 billion last autumn and also bought Bear Stearns over a year ago.

The bank is the latest to exceed analyst’s expectations and earlier this month, Wells Fargo stunned investors by announcing it expects to report a record net profit for the first quarter.

Talking about the year ahead, Mr Dimon said the bank “is confident that even a highly adverse economic scenario would not compromise our overall strength and stability.”

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