JPMorgan Chase Q2 profits down 53 percent on mortgage crisis

July 17th, 2008 - 9:14 pm ICT by IANS  

New York, July 17 (DPA) US banking giant JPMorgan Chase Thursday reported that its profits in the second quarter came to $2 billion, down 53 percent from the same period a year ago amid problems with loans and mortgages. The figure compares with $4.23 billion in the second quarter last year, as meanwhile the bank said it had to write down $1.1 billion in it assets.

Though well below the previous-year period, the second-quarter profit at 54 cents per share was better than what most analysts had been projecting, reports said.

Company chairman Jamie Dimon, however, warned of further worries ahead amid the economic slump, bringing with it problems for financial markets.

“Our expectation is for the economic environment to continue to be weak - and to likely get weaker - and for the capital markets to remain under stress,” Dimon said.

JPMorgan Chase earnings were also affected by a net after-tax loss of $540 million related to the acquisition of the Bear Stearns Companies Inc, which closed May 30 this year.

Excluding these items, net income would have been $2.5 billion, a company statement said.

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