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JP Morgan profits rise to a record $6.5 billion

Press release   •   Apr 12, 2013 15:12 BST

JP Morgan's quarterly profits have risen 33% to a record of $6.5 billion, helped by a reduction in the amount it set aside for bad debts.

The results - the first in Wall Street's earnings season - beat analysts' expectations of about $5.4 billion in net income.

Retail banking, powered partly by mortgage originations, and corporate and investment banking, driven by debt issuance, contributed to what Jamie Dimon, chief executive, called "a very good start to the year".

Retail banking deposits rose 10%, new mortgage orders rose 37% and the company said it had kept the top spot for earnings from investment banking.

In many respects, it's been a difficult year for the New York-based bank. A surprise trading loss, which the bank acknowledged about a year ago, has been haunting it, resulting in management shake-ups, increased scrutiny from regulators, scoldings from Congress and a big pay cut for CEO Jamie Dimon.

The year-earlier period was hurt by a charge of 12 cents a share tied to the London Whale trading debacle, which caused more than $6 billion in losses overall last year.

Last month, the Federal Reserve asked the bank to resubmit its capital plan by the end of September, to address the Fed's concerns about unspecified weaknesses. JPMorgan said Friday it is "dramatically increasing the resources deployed" to address the Fed's concerns, and said it "intends to fully address" the Fed's requirements.

J.P. Morgan Chase's results were also lifted by a 28% year-over-year jump in profits at its investment-banking arm to $2.61 billion. The company ranked No. 1 in fees, global debt and equity, syndicated loans and announced M&A during the first quarter.

Shares of New York-based J.P. Morgan slipped 0.61% to $49.00 ahead of Friday's opening bell. The stock had been up more than 12% on the year as of Thursday.

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