NEW YORK: JPMorgan Chase on Friday reported lower earnings due to a drop in its mortgage and trading businesses as the US banking giant seeks to turn the corner after costly legal settlements.
JPMorgan, one of the first major companies to release first-quarter results, said net income was $5.3 billion, down 19 per cent from a year ago.
Key factors behind the decline included a big drop in mortgage banking income, lower earnings from fixed-income trading and a rise in provisions in case of credit losses.
The earnings translated into $1.28 per share, well below the $1.40 expected by Wall Street. Revenues came in at $23.86bn, missing estimates of $24.53bn.
JPMorgan chief executive Jamie Dimon said the results were “good” given the industry-wide headwinds in trading and mortgages.
“We have growing confidence in the economy – consumers, corporations and middle-market companies are in increasingly good financial shape and housing has turned the corner in most markets – and we are doing our part to support the recovery,” Dimon said.
Net income in mortgage banking was $114 million, down $559m from last year. The bank has projected lower mortgage income for the year and has trimmed staff handling mortgage finance.
Revenue from fixed-income trading fell 21pc to $3.8bn. JPMorgan had signaled weak performance on its trading desk, but the figures were still weaker than many analysts expected.—AFP
