J.P. Morgan Chase Beats Estimates With 67% Profit Gain

J.P. Morgan Chase posted 67% Gain due to declining credit provisions

Declining credit defaults and late payments help bolster J.P.  Morgan Chase profit

J.P. Morgan Chase announced today an astounding gain in profit, with profit this past quarter rising 67%, this gain beat analysts’ expectations of the U.S.’s second largest bank (by assets).

Most of the gains were attributed to provisions for credit losses dropping.  Losses dropping by a whopping 83 percent as late payments and defaults have declining.

Though the company has posted significant gains over the previous year, J.P. Morgan Chase still posted a $208 million loss.  Gains realized were offset by the ongoing and exceptionally high losses related to mortgages and mortgage default issues.

The retail bank said in a statement today that first quarter net income increased from $3.33 billion to $5.56 billion – or 74 cents per share to $1.28 per share – in the same periods for 2010 and 2011.  Additionally, income had increased from $4.83 billion in the fourth quarter 2010.

According to Bloomberg.com, their analysts reported that “the results beat the average per-share estimate for adjusted earnings of $1.15 by 26 analysts surveyed by Bloomberg.”

Despite increased profit, there is a long road ahead for the banking and mortgage industry.  Based on reported total net revenue, the bank still saw a 9 percent drop in revenue to $25.22 billion from prior year’s $27.67 billion.

The New-York based bank was the first in its industry to post first quarter numbers, helping send Wall Street higher during opening trading.