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JPMorgan shares jump despite huge losses

Jul 13 2012 16:28

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New York - JPMorgan Chase shares surged over 4.1% in opening trade Friday after the bank reported solid second-quarter earnings despite a huge $4.4bn loss on derivatives.

The bank said it had earned $5bn in the quarter, even after more than doubling earlier estimates of its losses in the period from its botched "London Whale" derivatives hedging scheme.

Nearly 30 minutes into trade, the shares were off their highs but still up 3.85% at $35.35.

Profits were 9% lower than a year earlier, and the bank also revised first-quarter earnings lower by $459m

But investors seemed pleased that the quarter was not worse than that.

Chief executive Jamie Dimon said Friday the firm had "significantly reduced" the residual risk from the trading scheme, saying $1bn of gains had been clawed back even as it sought to quickly unwind the positions.

But he admitted the bank could face more losses of between $800m and $1.7bn.

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jp morgan  |  banks  |  shares
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