Huge profits at JP Morgan
JP Morgan today beat City expectations when it posted a 36% rise in profit, with second-quarter earnings reaching $2.7 billion (£1.6 billion).
The bank said it set aside $9.7 billion for credit losses, up from $4.29 billion a year earlier but down from the first quarter's $10.07 billion.
JPMorgan last month repaid $25 billion taken from the US bail-out fund the Troubled Asset Relief Program.
Analysts expressed surprise at the results. Manoj Ladwa, a trader at ETX Capital, said: "After Goldman Sachs' figures two days ago, JP Morgan was expected to report well. But to beat analysts' expectations by such a large margin indicates second quarter results may have been grossly undervalued.
"If this is the case, then the current rally in equities could continue through the summer."
