Chase Beats 2Q Expectations, But Lowers Auto Originations
Propped up by its investment banking division, JP Morgan Chase & Co.’s second-quarter profit in 2009 surpassed its own expectations. However, auto loan originations dipped from both the prior year and prior quarter.
Propped up by its investment banking division, JP Morgan Chase & Co.’s second-quarter profit in 2009 surpassed its own expectations. However, auto loan originations dipped from both the prior year and prior quarter.
The second-largest U.S. bank reported second-quarter profits of $2.7 billion, up from $2 billion a year earlier, and record revenue of $27.7 billion. Fueling its performance was its investment banking unit, which offset the $672 million loss in its credit card operations.
Average auto loans for the period dropped 4 percent to $43.1 billion, while auto originations dropped 5 percent from the prior year and quarter to $5.3 billion.
“We are pleased that, despite a continued difficult economic environment, we were able to report $2.7 billion in earning and record revenue of almost $28 billion,” said Jamie Dimon, chairman and CEO. “Of particular note, the investment bank reported record overall revenue for the first half of the year. In additional, commercial banking, asset management, treasury and securities services and retail banking each delivered another quarter of solid performance.
“These results were negatively affected by the continued high levels of credit costs in consumer lending and card services, which we expect will remain elevated for the foreseeable future.”
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