JPMorgan Chase has reported second-quarter 2009 net income of $2.7 billion, an increase of 36% compared with net income of $2 billion in the second quarter of 2008. Earnings per share were $0.28, compared with $0.53 in the second quarter of 2008.
Current-quarter earnings per share reflected a one-time, non-cash reduction in net income applicable to common stockholders of $1.1 billion, or $0.27 per share, due to repayment of TARP preferred capital.
Jamie Dimon, chairman and CEO, said: “We are pleased that, despite a continued difficult economic environment, we were able to report $2.7 billion in earnings and record revenue of almost $28 billion. Of particular note, the investment bank reported record overall revenue for the first half of the year, which included record fees and fixed income markets revenue for this quarter.
“In addition, commercial banking, asset management, treasury & securities services and retail banking each delivered another quarter of solid performance. These results were negatively affected by the continued high levels of credit costs in consumer lending and card services, which we expect will remain elevated for the foreseeable future,” he added.
Regarding balance sheet strength, Mr. Dimon, said: “Even after further strengthening our credit reserves by $2 billion to $30 billion and repaying the $25 billion of TARP capital, the firm ended the quarter with a Tier 1 Capital ratio of 9.7% and a Tier 1 Common ratio of 7.7%. With these additions to reserves, we now have an extremely high loan loss coverage ratio of 5%.”
