JP Morgan recorded profit of about $6.5bn for 2013’s 2nd quarter, up 31% compared to the previous year.
JP Morgan’s high increase in profits was quite flattered by heavy losses incurred by office of chief investment of US banking last year.The trader Bruno Iksil did run up $6.2bn regarding losses totally.
Wells Fargo reported 20% increase in the quarterly profits till $5.27bn while it set less money aside for the bad loans.
The Net revenues in big retail bank of JP Morgan were a bit down from the previous year though rose to 10% at the investment bank. Also, it rose at the unit of asset management.
JP Morgan happens to be the 1st big US bank which reported results. As biggest bank of US by assets, now JP Morgan tends to be looked at to be bellwether for health of the industry of banking.
In one statement, he said that results showed great performance across their businesses.
He said that economy of US was depicting many signs of the recovery, but small businesses and consumers remained cautious.
Strength of US economy happens to be a major issue, having all the eyes on the time when Federal Reserve of US would end the massive programme of bond buying.
The questions regarding when Federal Reserve may tighten the policy have kept the markets worried since May’s end, when the chairman Ben Bernanke first hinted at the end of the programme.
Senior director of Newedge USA, Larry McDonald, told, “I think most banks are concerned with near record surges in currency and interest rate volatility. That’s the big concern right now – much more than the London whale in the past.”
Biggest mortgage lender of US, Wells Fargo saw the profits rise to $5.27bn from $4.4bn on the revenue which hardly changed at the $21.4bn.
The provision for the bad loans dropped 64% to the amount $652m.
The main risk officer of Wells Fargo, Mike Loughlin said that the levels of consumer loss have rapidly improved because of mainly the positive momentum of real estate residential market, with the home prices getting better much faster and also in many markets than could be expected.
The mortgage rates are on the increase since May. Thirty-year rates approached a 2 year high this Thursday.
While the revenues happened to be flat, the mortgage applications increased 4.2% as compared with 2013’s 1st quarter – suggesting that the higher rates as well as prospect of Fed winding the stimulus programme down weren’t affecting the consumer demand.