JP Morgan Chase, the USA’s largest bank, has recently reported about lower profits. The decline was mainly caused by London office’s major losses in the market of derivatives. Therefore, the banks’ overall net profit declined down to $4.96 bn or $1.21 per share. In 2011, the profit was around $5,43 bn.
It should be noted that JP Morgan Chase is one of the oldest and most influential conglomerates in the world. It is headquartered in New York and is considered the leader in terms of investment and commercial banking services. Its assets are estimated at $2.3 trillion, the biggest among US banks.
According to , US stock indexes gained more than 1% after a decline caused by JP Morgan’s report and poor economic stats form China.
Dow Jones gained 1,3%, JPMorgan’s stock increased by 4,3% up to $35,49 per share, despite lower profits. Merrill Lynch’s stock appreciated by 2,1% up to $7,64 per share.
Standard & Poor's 500 rallied 1,3% up to 1 351,59 while 10 of its sub-sectors closed in the green zone. Nasdaq Composite gained 1,1%, thus reaching 2 897,93.
