JP Morgan Chase (JPM) Smashes Through Q2 Estimates

July 16, 2009 7:05 AM EDT

JP Morgan Chase (NYSE: JPM) reports Q2 earnings of $0.28 per share, down from $0.53 last year but well above the consensus of $0.04. Revenues came in at $27.71 billion, versus the consensus of $25.89 billion.

Current-quarter earnings per share reflected a one-time, non-cash reduction in net income applicable to common stockholders of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital.

CEO Jamie Dimon said, "We are pleased that, despite a continued difficult economic environment, we were able to report $2.7 billion in earnings and record revenue of almost $28 billion. Of particular note, the Investment Bank reported record overall revenue for the first half of the year, which included record fees and Fixed Income Markets revenue for this quarter. In addition, Commercial Banking, Asset Management, Treasury & Securities Services and Retail Banking each delivered another quarter of solid performance. These results were negatively affected by the continued high levels of credit costs in Consumer Lending and Card Services, which we expect will remain elevated for the foreseeable future."

Commenting on the second half of 2009, Dimon concluded: "While we do not know if the economy will deteriorate further, we feel confident that, with our strong capital and reserve levels and significant earnings power, we can continue to reinvest in our businesses and do well for our clients, communities and shareholders over the long term."

UPDATE: Click here to see some highlights from the company's Q2 conference call.

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