Financial services giant JPMorgan Chase & Co. (JPM: Quote) posted lower second-quarter 2012 net income of $5.0 billion, compared with $5.4 billion in the 2011 second quarter, with earnings per share declining to $1.21 from $1.27 a year before. On average, 23 analysts polled by Thomson Reuters expected earnings per share of $0.72 for the quarter. Analysts' estimates typically exclude one-time items.
The company said quarterly results were affected by several significant items. These included $4.4 billion of losses on CIO's synthetic credit portfolio, $1.0 billion of securities gains in CIO and a $545 million gain on a Bear Stearns-related first-loss note, for which the Firm currently sees full recovery. The Firm's results also included $755 million of DVA gains, reflecting adjustments for the widening of the Firm's credit spreads, which do not reflect the underlying operations of the firm.
Quarterly total net revenue, on a reported basis, amounted to $22.18 billion, down 17%, versus $26.78 billion in 2011. On a managed basis, net revenue was $22.89 billion, lower than $27.41 billion in the previous year. Analysts estimated revenues of $21.90 billion for the quarter.
Commenting on CIO, Chairman and Chief Executive, Jamie Dimon, remarked, "CIO will no longer trade a synthetic credit portfolio and will focus on its core mandate of conservatively investing excess deposits to earn a fair return."
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by RTT Staff Writer
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