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| JPMorgan profits fall 19% as mortgage business fades | JPMorgan profits fall 19% as mortgage business fades |
| (about 1 hour later) | |
| US banking giant JPMorgan Chase has reported a sharp fall in profits at the start of 2014, which it blamed on declines in its mortgage business. | |
| The bank said net income in the three months to the end of March was $5.3bn (£3.1bn) - a fall of 19% compared with a year earlier. | The bank said net income in the three months to the end of March was $5.3bn (£3.1bn) - a fall of 19% compared with a year earlier. |
| Profits from its mortgage business stood at $114m, down $559m from last year. | Profits from its mortgage business stood at $114m, down $559m from last year. |
| The figures mark the second successive quarterly fall in profits at the bank. | The figures mark the second successive quarterly fall in profits at the bank. |
| Profits from its corporate and investment banking division stood at $2bn, down from $2.6bn just three months earlier. | Profits from its corporate and investment banking division stood at $2bn, down from $2.6bn just three months earlier. |
| Legal costs | Legal costs |
| The results follow a 2013 marred by huge legal settlements over JPMorgan's mortgage practices prior to the 2008 crisis. | |
| The "London whale" trading scandal and other controversies including legal costs relating to the fraudster Bernie Madoff also dented earnings in 2013. | The "London whale" trading scandal and other controversies including legal costs relating to the fraudster Bernie Madoff also dented earnings in 2013. |
| JPMorgan chief executive Jamie Dimon still described the bank's first quarter results as "good" given the industry-wide headwinds in both investment banking and mortgages. | JPMorgan chief executive Jamie Dimon still described the bank's first quarter results as "good" given the industry-wide headwinds in both investment banking and mortgages. |
| "We have growing confidence in the economy -- consumers, corporations and middle market companies are in increasingly good financial shape and housing has turned the corner in most markets -- and we are doing our part to support the recovery," Mr Dimon said. | "We have growing confidence in the economy -- consumers, corporations and middle market companies are in increasingly good financial shape and housing has turned the corner in most markets -- and we are doing our part to support the recovery," Mr Dimon said. |
| Mr Dimon called the conditions of 2013 "painful and nerve-wracking" in a letter to shareholders in April. | Mr Dimon called the conditions of 2013 "painful and nerve-wracking" in a letter to shareholders in April. |
| However, bank officials are hopeful 2014 will see fewer large legal settlements with regulators and private parties. | However, bank officials are hopeful 2014 will see fewer large legal settlements with regulators and private parties. |