JPMorgan Chase & Co. today reported a net loss of $548 million, or $0.27 per share, for the second quarter of 2004. That’s compared to a net income of $1.83 billion, or $0.89 per share, for the second quarter of 2003.
Bank One Corp. announced 2004 second-quarter net income of $1.1 billion, or $0.99 per share, compared to $856 million, or $0.75 per share, for the second quarter of 2003. JPMorgan Chase and Bank One merged July 1, so the second-quarter earnings for each company are reported separately.
Second-quarter earnings for JPMorgan Chase were reduced by a $2.3 billion after tax charge to increase litigation reserves and $60 million, after tax, of merger costs. Excluding these charges, earnings would have been $1.81 billion, or $0.85 per share.
“Our earnings this quarter, excluding the charges, were comparable to the prior year,” said William B. Harrison Jr., chairman and CEO of JP Morgan Chase. “Strength in investment banking fees, continued improvement in our commercial credit portfolio, and strong results from private equity were offset by the expected decrease in Chase Home Finance and weakness in trading as the capital markets environment became more challenging.
Chase Home Finance earnings were $321 million for the quarter, a decrease of 43 percent from record performance in the second quarter of 2003. Total revenue of $965 million declined 28 percent from last year as higher rates lowered mortgage originations.
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