JP Morgan Chase Reports Second Quarter 2009 Financial Results

JPMorgan Chase this morning reported second-quarter 2009 net income of $2.7 billion, an increase of 36% compared with net income of $2.0 billion in the second quarter of 2008.

In its credit card business, JP Morgan Chase reported that charge volume declined over 16% year over year to $78.3 billion. End of quarter outstandings declined 4% year over year to $148.4 billion. The managed net charge-off rate for the quarter was 10.03%, up from 4.98% in the prior year and 7.72% in the prior quarter. The 30-day managed delinquency rate was 5.86%, up from 3.46% in the prior year and down from 6.16% in the prior quarter, reflecting normal seasonal patterning. The managed net charge-off rate for the quarter was 10.03%, up from 4.98% in the prior year and 7.72% in the prior quarter. The 30-day managed delinquency rate was 5.86%, up from 3.46% in the prior year and down from 6.16% in the prior quarter, reflecting normal seasonal patterning.

In terms of outlook for its credit card business, JPM said it expected losses on the Chase portion of its card portfolio could approach 10% next quarter while it expects losses on the WaMu portion of its card portfolio to approach 24% by the end of 2009. The bank said it expects continued pressure on charge volume and outstandings.

A presentation on the quarterly results is available online.