JPMorgan profit declines 8 percent as fixed-income trading slides
By David Henry and Tanya Agrawal
(Reuters) - JPMorgan Chase & Co JPM.N, the biggest U.S. bank by assets, said on Tuesday that second-quarter profit fell 8 percent after customer stock and bond trading volume dropped and mortgage lending fees plunged.
The results were not as bad as investors had feared, and the bank's shares rose 3.8 percent to $58.44 shortly after midday.
Chief Executive Jamie Dimon said the bank had seen "encouraging signs" across its businesses toward the end of the quarter, including businesses drawing more from credit lines. But the bank's executives also sounded notes of caution, noting that it was "too early to assume that this momentum will continue."
Speaking on a conference call with analysts, Dimon said that companies are still not stepping up capital spending. On a conference call with reporters, Chief Financial Officer Marianne Lake said the pickup in bond trading revenue that the bank saw in June has not continued through July.
The report is the bank's first since Dimon disclosed that he had throat cancer.
Dimon told reporters on Tuesday, "I feel great," and added that he would stay engaged with the business as he underwent treatment. He said for the first time that he was advised to take a few weeks of rest after his eight weeks of treatment.
The bank's net income fell to $5.99 billion, or $1.46 per share, from $6.5 billion, or $1.60 per share, in the same quarter of 2013. Revenue fell 3 percent to $24.45 billion.
Analysts on average had expected earnings of $1.29 per share, according to Thomson Reuters I/B/E/S. Continued...