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 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.