July 13, 2012
JPMorgan Chase Reports Second-Quarter 2012 Net Income of $5.0 Billion, or $1.21 Per Share, On Revenue1 of $22.9 Billion
Results Include CIO Trading Losses
Supported Consumers, Businesses and Communities
New York, July 13, 2012 - JPMorgan Chase & Co. (NYSE: JPM) today reported second-quarter 2012 net income of $5.0 billion, compared with net income of $5.4 billion in the second quarter of 2011. Earnings per share were $1.21, compared with $1.27 in the second quarter of 2011. The Firm's return on tangible common equity1 for the second quarter of 2012 was 15%, compared with 17% in the prior year.
Jamie Dimon, Chairman and Chief Executive Officer, commented on financial results: "Importantly, all of our client-driven businesses had solid performance. However, there were several significant items that affected the quarter's results - some positively; some negatively. These included $4.4 billion of losses on CIO's synthetic credit portfolio, $1.0 billion of securities gains in CIO and a $545 million gain on a Bear Stearns-related first-loss note, for which the Firm now expects full recovery. The Firm's results also included $755 million of DVA gains, reflecting adjustments for the widening of the Firm's credit spreads which, as we have consistently said, do not reflect the underlying operations of the Firm. The Firm also reduced loan loss reserves by $2.1 billion, mostly for the mortgage and credit card portfolios. These reductions in reserves are based on the same methodologies we have used in the past - the good news is that these reductions reflected meaningful improvements in delinquencies and estimated losses in these portfolios. We continue to maintain strong reserves."
1 For notes on non-GAAP measures, including managed basis reporting, see page 14.