JPMorgan Chase's 2Q Results: Postgame Scorecard

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JPMorgan Chase (NYSE:JPM) reported a decline in net income as revenue fell in the second quarter.

Earnings and Revenue The company experienced stronger-than-expected EPS and revenues. The company reported EPS of $1.21 a share versus the 78 cents a share estimate and revenues of $22.18 billion versus the $21.93 billion estimate. The company's reported EPS came in above the high estimate of 22 analysts of a profit of $1.08.

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The company's net income for the quarter was $4.96 billion. This is a 8.7% decline from last year. Revenue fell 17.2% from $30.57 billion in the same period last year.

Company Fundamental Trends The company has now reported lower net income at least in each of the last four quarters.

History Against Expectations The company has managed to top estimates the last two quarters. In the first quarter, it beat expectations with net income of $1.31 versus a mean estimate of net income of $1.17 per share.

Official Comment: Jamie Dimon, Chairman and Chief Executive Officer, commented on financial results: "Importantly, all of our client-driven businesses had solid performance. However, there were several significant items that affected the quarter's results - some positively; some negatively. These included $4.4 billion of losses on CIO's synthetic credit portfolio, $1.0 billion of securities gains in CIO and a $545 million gain on a Bear Stearns-related first-loss note, for which the Firm now expects full recovery. The Firm's results also included $755 million of DVA gains, reflecting adjustments for the widening of the Firm's credit spreads which, as we have consistently said, do not reflect the underlying operations of the Firm. The Firm also reduced loan loss reserves by $2.1 billion, mostly for the mortgage and credit card portfolios. These reductions in reserves are based on the same methodologies we have used in the past - the good news is that these reductions reflected meaningful improvements in delinquencies and estimated losses in these portfolios. We continue to maintain strong reserves."

Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.