As Americans continue to deal with record home foreclosures and record unemployment, JPMorgan Chase announced on Friday its 2010 4th quarter net income jumped 47 percent from the same period in the prior year.
One of the giants in America’s financial arena, JPMorgan Chase earned $4.83 billion during the fourth quarter of 2010, compared to the $3.28 billion it earned during the same quarter in the previous year. The profit came on revenue of $26.7 billion and earned $1.12 per share, far exceeding the expected 99 cents per share.
In a press release (pdf) the New York bank reports it set aside money for covering loan losses. It also increased money set aside for litigation purposes by $1.5 billion. During the fourth quarter, private investors sued banks or sent letters notifying banks to buy back bad loans, claiming the loans were written improperly.
Jamie Dimon, Chairman and CEO, said in the release: “Solid performance in the quarter and for the year reflected good results across most of our businesses, which benefited from strong client relationships and continued investments for growth. Credit trends in our credit card and wholesale businesses continued to improve. In our mortgage business, while charge-offs and delinquencies have improved, credit costs still remain at abnormally high levels and continue to be a significant drag on our returns .”
According to the Associated Press, Dimon said banks are preparing themselves to fight such claims in court and noted there are obstacles for investors attempting to make banks buy back those bad loans.
For the year, the financial giant raked in a $17.4 billion profit, a 48% increase over its $11.7 billion profit made in 2009, Forbes reported.
Bank of America and Goldman Sachs will report their quarterly earnings next week, as financial firms line up to tell America how great they are doing.