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NEW YORK (Reuters) - JPMorgan Chase & Co reported higher second-quarter profits, boosted by lower costs for bad loans.
JPMorgan said earnings were $5.4 billion, or $1.27 a share, in the quarter, compared with $4.8 billion, or $1.09 a share, in the same period a year earlier.
"The JPMorgan results are good news for the sector, but I think headwinds from Washington in the form of regulatory uncertainty are still blowing hard, and they will blow hard for a few years to come. That's going to continue to keep a lot of pressure on institutions to make these kind of numbers."
MICHAEL HOLLAND, FOUNDER OF HOLLAND & CO LLC
"In a word - wow. The top line revenue was a blow-away number. This is the eleventh straight quarter that they've outperformed expectations. The bank looks incredibly healthy despite all the headwinds globally and coming out of Washington. This sets such a high bar for the rest of the industry."
"It's good to have a big bank come out and beat estimates. It sets a positive tone for other commercial banks. But for the moment, the stock market is focusing more on Europe and the economic data that we will have later in the day."
ANTHONY POLINI, MANAGING DIRECTOR, EQUITY RESEARCH, AT RAYMOND JAMES & ASSOCIATES, INC:
"JPMorgan had a great quarter, they beat the Street. It was driven by high revenues, pretty much across the board. JPMorgan is not only the bellwether for the industry, it's also one of the best banks in the industry, so they will continue to get better-than-expected results, despite the challenging environment.
The much better-than-expected revenue growth and the commercial loan growth especially caught my attention. Given these results, JPMorgan stock should be up even more than the (gain) it reached shortly after the earnings were posted.
MATT MCCORMICK, PORTFOLIO MANAGER, BAHL & GAYNOR INC:
"A lot of people, myself included, were expecting weakness from the banks. ... This is a positive quarter overall and a reflection of Jamie Dimon's leadership. It's been a tough quarter, but ... don't expect similar results from the other big banks.
"Investment banking is a strong point, but I don't know how long that's going to continue from a corporate standpoint -- whether it'll be the debt crisis or other areas, confidence is something they'll have to manage."
"On the surface, the results are much better than anyone expected. The disaster that everyone expected in the numbers because of the pressures on the industry just didn't happen.
JPM is usually a bellwether for where the rest of the industry is going. But for this company to put up these kinds of numbers, given all the pressures the industry is facing, is phenomenal, in my mind."
Reporting by Maria Aspan, Joe Rauch, Angela Moon, and Aleksandra Michalska, compiled by Knut Engelmann