US banking giants see profits jump

JP MOrganExcluding the effect of last year’s big trading loss, net revenues were largely unchanged from a year ago

JP Morgan has recorded a profit of $ 6.5bn (£4.3bn) for the second quarter of 2013, up 31% from a year ago.

The steep rise in profits is flattered by the heavy losses controversially incurred by the US banking giant’s chief investment office last year.

Dubbed the “London whale”, trader Bruno Iksil ran up $ 6.2bn in losses in total.

Net revenues at its large retail bank were slightly down from a year ago, but rose 10% at its investment bank, and also rose at its asset management unit.

JP Morgan is the first of the big US banks to report results. As the US’s biggest bank by assets, JP Morgan is looked at as a bellwether for the health of banking industry.

The figures are the first the bank has posted since chairman and chief executive Jamie Dimon overwhelmingly won a shareholder referendum in May on whether he should hold both posts.

He said in a statement that the results showed a “strong performance across our businesses”.

The US economy was showing “broad-based signs” of recovery, but consumers, small businesses remained cautious, he said.

BBC News – Business

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