JP Morgan Chase

JP Morgan Chase reported better-than-expected quarterly profits after a record performance at its investment bank। It joined rival Goldman Sachs in saying it was ready to repay emergency bailout money received from the government last year. Increased losses from credit cards and other consumer debt have forced JP Morgan to set aside more money to cover bad debts in its consumer banking business।

JP Morgan made a profit of $2।1bn (£1.41bn), or $0.40 a share, in the first three months of the year. Although that was lower than the $2.4bn result achieved a year ago, it beat analysts' consensus forecast of a profit of $0.30 a share. Revenues climbed 50% to $29.9bn. At the start of the week, Goldman raised $5bn from investors in an effort to become the first major US institution to pay back its $10bn slice of the emergency government bailout।

However, Jamie Dimon, the chief executive, said the bank had enough cash to return the $25bn in taxpayer funds it received in October. "We could pay it back tomorrow," he said, adding that he was waiting for guidance from the government on when it could do so. He said money received under the troubled asset relief program (Tarp) had become a "scarlet letter" for banks.

JPM

JPM Chase & Co। on Thursday said first quarter profit fell 10% as the banking giant boosted reserves for bad loans by more than $4 billion. The company added a total of $4।2 billion to credit reserves, raising its aggregate provision to $28 billion, representing 4।53% of assets, the company said.

Among other closely watched metrics, the New York-based bank said its Tier 1 capital level was 11।3% during the quarter, or 9.2% if the calculation excludes capital the bank got under the government's TARP investment plan. Tangible common equity, or the value of the company minus its liabilities, was $87.2 billion. Analysts at Thomson Reuters had, on average, expected the company to post a profit of 32 cents a share।

"It is reasonable to expect additional increases to credit reserves if the economic environment worsens। Yet, we are confident that even a highly adverse economic scenario would not compromise our overall strength and stability -- or our ability to enhance our franchises," Dimon added. Net revenue rose to $25.3 billion compared to $16.89 billion a year ago. The bank saw provision for credit losses soar 94%, reaching $8.6 billion.