16 Jan 2010

JP Morgan reports $US3.3 billion profit

7:27 pm on 16 January 2010

Wall Street bank JP Morgan Chase has reported a profit of $US3.3 billion for the last three months of 2009.

That compares with a profit of $US702 million reported last year, at the height of the financial crisis.

Net revenues for the quarter totalled $US25.2 billion - higher than a year ago, but below the previous quarter's.

The bank said total profits for the year were $US11.7 billion, up from the $US5.6 billion in 2008, with $US6.9 billion from investment banking alone.

The bank paid a total of $US26.9 billion in pay and bonuses over the year, with investment bankers earning a total of $US9.3 billion.

Chairman and chief executive Jamie Dimon said he was pleased with the bank's performance, but said JP Morgan could perform better.

Sub-prime exposure relatively small

JP Morgan Chase is the third-largest bank in the United States with operations in 60 countries. Its exposure to the US sub-prime mortgage market was relatively small.

It rescued two of its large rivals, Bear Stearns and Washington Mutual, in 2008 and has repaid an emergency loan of $US25 bilion received from the US government as part of the Troubled Asset Relief Programme.

Other major US banks, including Morgan Stanley, Goldman Sachs and Citigroup, are due to report results from Monday.

President Barack Obama announced plans on Thursday to recover almost $US120 billion from US banks to pay back bank bail-out costs.