JPMorgan Chase has reported first half net
profits of $8.12bn, up 67% from the corresponding period last
year.

Net income at JPMorgan Chase’s retail
financial services division soared by 86% to $911m while the card
division returned to the black, posting first half net profits of
$40m, compared to a loss of $1.21bn in the year ago period.

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First half retail banking highlights
included:

  • Checking account total numbers up 4% year-on-year to
    26.3m;
  • Mortgage originations up 43% year-on-year;
  • A net interest margin of 3.05%, up 13 basis points from a year
    ago, and
  • Auto loan originations up 9% year-on-year.

But average retail deposits of £337.8bn were
down 3% year-on-year and credit card sales were 8% down from a year
ago.

Total branch numbers declined by less than 1%
(44 units) to 5,159 branches.

While the card division reported vastly improved first half
results, driven by a lower provision for credit losses, second
quarter cards’ net interest income of $3.4 billion fell by 22% from
the year-ago quarter, as a result of legislative changes and a
decreased level of fees.

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“Although we are gratified to see consumer-lending net
charge-offs and delinquencies decline, they remain at extremely
high levels and therefore returns in our consumer-lending
businesses are still unacceptable,” said JPMorgan Chase chairman
and CEO Jamie Dimon.

“As a result, these businesses did not meet expectations nor
generate satisfactory returns on capital for our shareholders. It
is too early to say how much improvement we will see from here.

“We saw solid performance in our other businesses. In
particular, our wholesale businesses experienced reduced net
charge-offs that led to reductions in loan loss reserves, and are
currently seeing credit costs which reflect the increasingly
healthy condition of our wholesale clients.”

JPMorgan Chase’s Tier one capital ratio increased from 9.7% a
year ago to 12.1% at the end of the first half.