JPMorgan Chase Q1 net vaults nearly 70 per cent to $5.6 billion

JPMorgan Chase & Co today reported first-quarter 2011 net income of $5.6 billion - a 69.9 per cent year-on-year jump from the first quarter 2010 level of $3.3 billion. Earnings per share shot up to $1.28 from $0.74 in the first quarter of 2010.

The No 2 US investment bank, however, boosted its first-quarter profit by nearly 70 per cent by drastically cutting provisioning for bad loans.

The bank set aside $1.17 billion to cover bad loans, against $7.01 billion a year earlier. The lower loan loss provisioning stems from lower credit losses, it said.

JP Morgan Chase reported a 10 per cent fall in its consumer loans position in the quarter, without any substantial increase in loans to corporate customers.

JP Morgan Chase also took a $1.75-billion charge over collecting payments on bad mortgages and foreclosures.

The bank said a planned settlement with regulators over mortgage servicing abuses could also force it to hire around 3,000 people.