JP Morgan Chase: Profits Rise

Wall Street Bank JP Morgan Chase has reported soaring profits for the last quarter of 2009. Its net income has more than quadrupled to around $3.3 bn. This is in comparison to $702 m for the same quarter of 2008, when the economic recession was at its worst. Total profits for the year totaled to $11.7 bn. The bank revealed that investment banking had provided for the bulk of the earnings and profits. Investment bankers earned $9.3 bn, which was a 21% increase over the previous year.

Jamie Dimon, JP Morgan's chairman and chief executive, said that though things could have been much better, still he was pleased with the bank's performance. He didn't forget to heap praises on his staff, who he said helped protect the bank and keep it healthy and vibrant in the times of crisis. He added, "Though these results showed improvement, we acknowledge that they fell short of both an adequate return on capital and the firm's earnings potential. I am very proud of our more than 200,000 employees around the world, from our programmers to our receptionists to our bankers." JP Morgan has managed to be the strongest bank in the United States all through the financial crisis. David Buik, BGC Partners analyst said, "Although JPMorgan's bottom line was better, its revenues were light and writedowns, credit card lending and retail banking showed signs of weakness. The fact remains that the timing of the implementation of this levy is very surprising, as the banks are far from out of the woods, as was seen with JPMorgan's results."

JP Morgan paid its 200,000 strong staff, salaries and bonuses worth $27 bn over the year, which was an increase of around 18% as compared to 2008. JP Morgan had received $25 bn from the government's bail out fund, and the good thing is that they repaid it in full by mid 2009 itself. Goldman Sachs, Morgan Stanley and Citigroup, the other main banks in the US are expected to announce their respective results early next week.