JPMorgan CEO 'proud' of his company, which once again delivers the goods

Thumbs Up At Desk

It's Jamie Dimon time.

JPMorgan Chase has reported net income of $6.5bn for the second quarter of 2013, compared with net income of $5.0bn in the second quarter of 2012.

Revenue for the quarter was $26.0bn, compared with $22.9bn in the prior year.

Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial results:

'Our earnings reflected strong performance across our businesses. We maintained our #1 ranking in global Investment Banking fees. Consumer deposits were up 10% compared with the prior year and Credit Card sales volumes were a record $105.2 billion, up 10%.

And notably, Asset Management had $25 billion of net long-term client flows, the seventeenth consecutive quarter of positive net long-term client flows. Net charge-offs remain near historical lows in our Credit Card business, have dropped to less than half of what they were a year ago for our Real Estate Portfolios and remained very low in our wholesale portfolios.

In light of these trends, we reduced the allowance for loan losses in Consumer & Community Banking in the second quarter by a total of $1.5 billion. Loan growth across the industry continued to be soft, reflecting a cautious stance by consumers, many small businesses and corporations. However, we continue to see broad-based signs that the U.S. economy is improving and we are hopeful that, as jobs are added and confidence builds, the U.S. economy will strengthen over time'.

Dimon continued: 'This quarter, we exceeded the proposed Basel III Liquidity Coverage Ratio requirement – as of the end of the second quarter, our estimated ratio was 118% – and we are committed to achieving a Basel III Tier 1 common ratio of 9.5% by the end of this year. We estimate that our Basel III Tier 1 common ratio, reflecting the final rules approved by the Federal Reserve on July 2, 2013, was approximately 9.3% at the end of the second quarter, including the reduction of the value of our investment securities that are available for sale because of higher long-term interest rates'.

Dimon added: 'While we have put extensive focus on our control agenda, we have continued to serve our clients and communities around the world. During the first six months of the year we raised capital and provided credit2 totaling $1.0 trillion for our clients, from individuals to large multinational corporations. Regarding our control agenda, we have taken some of our best people, given them enormous resources and tasked them with ensuring that our systems, practices, controls and technology meet the highest standards. We are confident that these investments will pay off and we will be a better company for it'.

Dimon concluded: 'I am proud of this Company and what our employees do every day to serve our clients, customers and communities in over a hundred countries'.

Bloomberg News reports that the firm’s corporate and investment bank allocated almost the same amount of money for employees in the first half from a year earlier as the division’s revenue climbed 9%.

The unit’s $6.36 billion in first-half compensation costs amounted to 33% of revenue, excluding accounting adjustments, down from 34% in the prior year, according to figures posted Friday on the New York-based firm’s website.

The amount is equal to $122,926 for each of the division’s 51,771 employees in the six months.

JPMorgan Investment Bank's 1st-Half Pay Little Changed

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