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JPMorgan with 76% growing of the quarterly profit

The U.S. bank JPMorgan said its profit growth of 76 percent annually in the second quarter. Much of the positive result is due to the reduction of reserves to cover possible credit losses of 1.5 billion dollars. The Bank has made a profit of 4.8 billion dollars or 1.09 dollars per share in the quarter after the same period last year the positive result was 2.7 billion dollars, or 28 cents a share, writes Market Watch. If you do not take into account the effect of lower reserves and the cost of 550 million dollars come tax because bankers bonuses in the UK, JPMorgan profit is 87 cents a share. Revenues of the financial institution does have declined from 8 percent to 25.61 billion dollars. Preliminary analyst expectations were for earnings of 74 cents a share and revenue of 25.81 billion dollars. JPMorgan net profit from investment banking fell by 6 percent to 1.4 billion dollars. Fees from getting of share issues have fallen by 68 per cent, while the issuance of debt securities have dropped by 6 per cent. The bank realized good profits from fixed rate mortgage offers, which they made with customers in the years of the crisis. The loans were covered with insurance, which was good action from the bank.
According to banking analyst Dick Bouv Rochdale Securities report by the bank is not very good because it shows not so good performance of the bank as a reduction in the allowance. His opinion is that the revenue of the financial institution are also more limited than was expected.