INSTANT VIEW: JPMorgan earnings rise, beat forecasts

NEW YORK (Reuters) - JPMorgan Chase & Co <JPM.N on Thursday posted a higher quarterly profit, saying strength in its core consumer and investment banking businesses offset a jump in credit losses.

Second-quarter net income rose to $2.72 billion from $2 billion a year earlier, JPMorgan said. Profit per share fell to 28 cents from 53 cents. Net revenue jumped 41 percent to $27.71 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.

The earnings beat analysts' forecasts of 4 cents a share and the revenue beat a $25.9 billion forecast.

The following is reaction from industry analysts and investors:

MICHAEL HOLLAND, MONEY MANAGER, HOLLAND & CO, NEW YORK:

"The revenue growth in this environment, whether Intel, or Goldman Sachs, or these guys, is very precious.

"They were able to come through the worst financial crisis in the last quarter century in such a way that they have the opportunity to grow revenues, meaning that they were not only in the great transaction business raising capital for other people, but also on the trading side. They took advantage of some of the dislocations in the market because they were able to ease their balance sheet and take some risks.

"I don't see anything other than some glory there for them, having come through this period and make money in the old fashion way."

PETER DIXON, ECONOMIST, COMMERZBANK, LONDON

"The performance of JP Morgan relative to consensus is generally much more patchy than Goldman Sachs, but it's clear that the bank has done reasonably well on the trading side and less well on the home and private lending side."

"It's basically telling us that the banks which have a reasonably strong trading presence will be bailed out hopefully by the second quarter results."

"In the longer run, we probably shouldn't get too excited about the banks' ability to generate profits because they will be constrained by government actions to prevent them from taking the kind of risk they took in past."

JOERG RAHN, CHIEF INVESTMENT OFFICER AT WEALTH MANAGERS MARCARD, STEIN & CO. HAMBURG

"That was really very, very good news and confirms the development of the banking sector in the United States. It was a truly positive surprise which does away with the question whether we actually have reached the end of the crisis."

MICHAEL HECHT, ANALYST at JMP SECURITIES, NEW YORK

"It looks like good, strong numbers, and it looks pretty broad based. This is a lot better than expected."

"So far, we've seen numbers out of Goldman Sachs and numbers out of these guys. We are in an increasing world of haves and have-nots, and we know where JPMorgan and Goldman fall in that."

RICHARD HUNTER, HEAD OF EQUITIES AT HARGREAVES LANSDOWN, LONDON.

"(JP Morgan results) have given a shot in the arm to the markets."

"It's too early to call the earnings season a success, but the early signs are positive as evidenced by a shift to risk taking on both sides of the pond."

CHRIS HOSSAIN, SENIOR SALES MANAGER, ODL SECURITIES, LONDON

"JP Morgan Chase numbers reiterated the growing confidence that the banking sector may be coming back from the nadir. With better than expected headline numbers, this might give the markets further impetus following the recent two day rally. Futures have perked up on release of the numbers."

DAVID MORRISON, MARKET STRATEGIST AT GFT GLOBAL MARKETS, LONDON

"They have been taken positively. They have come in above expectations."

"When Meredith Whitney upped her guidance on Goldman Sachs, it was a very specific recommendation and not to be taken to read through for the rest of the banks. But having said that JPMorgan is in a somewhat similar situation to Goldman Sachs. There is a lot of water between those two and the rest of the banks. I think it is narrowly positive for the market... But I don't think we can take too much read through to the broader market and not ahead of the numbers from Citi and Bank of America tomorrow."

DAN GREENHAUS, ANALYST AT MILLER TABAK & CO IN NEW YORK

"It's certainly encouraging to see a bank like JPMorgan beat estimates, because it's more representative of the economy than something like Goldman Sachs. I think that certainly if the beat was built on a solid foundation, I would expect the market to react favorably.

"Thus far, the earnings season has been OK, but you have to remember how far expectations have been depressed."

(Reporting by Ryan Vlastelica and Steve Eder in New York and Simon Falush, Juan Lagorio, Atul Prakash and Dominic Lau in London and Christoph Steitz in Frankfurt)