Financial services giant JPMorgan Chase & Co. (JPM) 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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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.