JPMorgan Chase & Co., the largest employer among banks in the Rochester market, reported net income of nearly $5 billion in the second quarter, 49 cents a share better than Wall Street projections, but losses from risky trades have reached $5.8 billion so far this year, executives said Friday.
The bank’s quarterly income declined 9 percent from $5.4 billion in the second quarter 2011. Earnings per share were $1.21, down from $1.27 a year ago. Analysts predicted earnings of 72 cents.
Company executives reported the $5.8 billion in losses during an earnings conference call, saying traders may have tried to hide the severity of the losses. Executives originally pegged the loss at $2 billion.
“We are not proud at this moment, but we are proud of our company,” Chairman and CEO James Dimon said.
The bank significantly has reduced the synthetic credit risk in its chief investment office since the end of the first quarter, Dimon said.
“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,” he said in a statement.
Shares of the bank’s stock (NYSE: JPM) were up more than 5 percent Friday afternoon at $35.89.
(c) 2012 Rochester Business Journal. To obtain permission to reprint this article, call 585-546-8303 or email service@rbj.net.
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