16 Jul 2010

Profit boost for JP Morgan

9:30 am on 16 July 2010

US bank JP Morgan has had strong profit growth in the second quarter, thanks largely to falling loan losses.

Net income was $US4.8 billion, a rise of more than 75% on the $US2.7 billion in the same period last year.

The bulk of improvement was because of a $US1.5 billion reduction in the amount of money the bank has set aside for possible loan losses.

The Manhattan-based bank also said it incurred a charge of $US550 million for the quarter, to cover the UK's new 50% bonus tax.