JPMorgan Chase reports $3.3bn Q4 profit

by Gill Montia

Story link: JPMorgan Chase reports $3.3bn Q4 profit

JPMorgan Chase has reported net profit of $3.3 billion for the final quarter of 2009, compared with $702 million a year earlier.

The result, which benefited from a surge in profitability at the group’s investment banking business, brings annual earnings close to $12 billion.

However, the bank’s credit card and retail banking operations both posted fourth quarter losses and provisions for credit losses stood at $4.2 billion for the quarter, an increase of $653 million from a year earlier and $241 million from the prior quarter.

According to the lender: “Weak economic conditions and housing price declines continued to drive higher estimated losses for the mortgage and home equity portfolios”.

Commenting on the results, chairman Jamie Dimon said his outlook for 2010 was “cautious” with the possibility of rising unemployment fuelling credit card losses of $2 billion for the group in the first half of the year.