(By Balachander) JPMorgan Chase & Co. (NYSE:JPM) shares rose 1.35 percent in premarket trading on Friday after the banking giant posted quarterly revenue that topped Wall Street projections.
Earnings per share fell 4.7 percent to $1.21 from $1.27 and net income dropped 7.4 percent to $5.0 billion in the second quarter.
Results for the second quarter included several items, including $4.4 billion of losses on CIO's synthetic credit portfolio, $1.0 billion of securities gains in CIO, a $545 million gain on a Bear Stearns-related first-loss note and DVA gains of $755 million.
Net revenue was $22.9 billion, down 16 percent and 14 percent from second quarter last year and prior quarter, respectively.
Analysts, on average, polled by Thomson Reuters expected earnings of $0.72 per share on revenue decline of 20.1 percent to $21.90 million.
Investment banking revenue fell 7 percent from the prior year period and 8 percent on a sequential basis.
The provision for credit losses dropped 88 percent and 71 percent from second quarter of 2011 and the previous quarter, respectively.
JPM estimates that its Basel III Tier 1 common ratio was 7.9 percent at the end of the second quarter.
Basel I Tier 1 Common ratio was 10.3 percent at June 30, 2012, compared with 10.3 percent at March 31, 2012, and 10.1 percent at June 30, 2011.
The New York-based company announced that it will amend interim financial statements for the first quarter of 2012. The restatement, which relates to valuations of certain positions in the synthetic credit portfolio in the firm's Chief Investment Office (CIO), will reduce JPM's net income by $459 million for the first quarter. The company earned $1.31 per share in the first three months of 2012.
The stock, which has been trading between $27.85 and $46.49 over the past year, closed Thursday's regular trading at $34.04.