* 2nd quarter net income $1.46/share vs estimate $1.29
* Fixed-income revenue falls 15 percent
* Dimon says feels "great," to stay engaged with business
* Shares rise 4.2 percent
(Updates share price, adds Breakingviews link)
By David Henry and Tanya Agrawal
July 15 JPMorgan Chase & Co, the biggest
U.S. bank by assets, said on Tuesday that second-quarter profit
fell 8 percent after customer stock and bond trading volume
dropped and mortgage lending fees plunged.
The results were not as bad as investors had feared, and the
bank's shares rose 3.8 percent to $58.44 shortly after midday.
Chief Executive Jamie Dimon said the bank had seen
"encouraging signs" across its businesses toward the end of the
quarter, including businesses drawing more from credit lines.
But the bank's executives also sounded notes of caution, noting
that it was "too early to assume that this momentum will
Speaking on a conference call with analysts, Dimon said that
companies are still not stepping up capital spending. On a
conference call with reporters, Chief Financial Officer Marianne
Lake said the pickup in bond trading revenue that the bank saw
in June has not continued through July.
The report is the bank's first since Dimon disclosed that he
had throat cancer.
Dimon told reporters on Tuesday, "I feel great," and added
that he would stay engaged with the business as he underwent
treatment. He said for the first time that he was advised to
take a few weeks of rest after his eight weeks of treatment.
The bank's net income fell to $5.99 billion, or $1.46 per
share, from $6.5 billion, or $1.60 per share, in the same
quarter of 2013. Revenue fell 3 percent to $24.45 billion.
Analysts on average had expected earnings of $1.29 per
share, according to Thomson Reuters I/B/E/S.
Revenue from fixed-income and equity markets fell 15 percent
to $3.5 billion in the quarter ended June 30 compared with the
same quarter last year, but the drop was less than the 20
percent decline that JPMorgan had forecast in May.
Investors had broadly expected trading revenue drops in the
20-percent range for the big banks, but stronger activity in
June helped dampen the declines that banks posted. Goldman Sachs
Group Inc posted a 10 percent decline in stock and bond
trading revenue for customers, excluding a business it sold last
Citigroup Inc, which reported on Monday, said income
from stock and bond trading fell 15 percent, excluding an
accounting adjustment - well below the 20-25 percent fall it had
braced the market for in May.
JPMorgan executives have said that institutional investors
seem to be shying away from bonds because of a lack of strong
opinions about future moves in interest rates and currencies.
MORTGAGE LENDING DROPS
JPMorgan, the second largest U.S. mortgage lender after
Wells Fargo & Co, said its profit from mortgage lending
fell 38 percent to $709 million, while mortgage application
volumes dropped 54 percent to $30.1 billion.
Overall U.S. mortgage demand has fallen for more than a year
as mortgage rates have risen. Demand for loans was also hit by a
weaker spring selling season compared with last year.
JPMorgan said total assets at end-June stood at $2.52
trillion, up from $2.48 trillion at the end of March.
(Reporting by David Henry and Tanya Agrawal; Editing by Ted
Kerr and Phil Berlowitz)