JP Morgan profits beat market expectations

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image captionJP Morgan is the first of the big US banks to report its second quarter results

JP Morgan Chase has reported a 13% rise in quarterly profits, beating market estimates, driven by its commercial and investment banking divisions.

Net profits at the US group totalled $5.4bn (£3.3bn) in the three months to 30 June, up from $4.8bn a year earlier.

Revenues at its commercial banking arm reached an all-time high, and were "strong" at the investment business.

The bank's retail unit also made a profit, despite continuing losses from bad mortgage debt.

Quarterly revenues at JP Morgan Chase were up 7% to $27.4bn.

'Positive tone'

The bank said its latest results reflected "sold performance across most of our businesses".

Net profits at its investment bank totalled $2bn, while those at its commercial arm came to $607m.

Its retail banking division made a net profit of $582m, despite bad debt losses of $454m.

JP Morgan is the first of the big US banks to report its second quarter results.

Analyst Peter Cardillo, chief market economist at Avalon Partners, said: "It's good to have a big bank come out and beat estimates.

"It sets a positive tone for other commercial banks."

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