US bank JP Morgan Chase has posted profits of $3.3 billion for the first quarter. The results represent a 55 per cent increase in the same quarter of 2009, indicating improving economic conditions, and are identical to the results of the previous quarter. The banks debt trading business was a significant factor in the profits, earning revenues of $5.5 billion. Indeed, the fixed income division was a strong performer on the whole, as bond markets produce lucrative returns for banks, while commercial and retail banking performed well, as did asset management .
Although the bank continues to lose money on loans it has approved to customers, the bank commented that consumers were displaying a greater stability, with a significant decrease in the rate of non-payments from consumers. This improved stability has prompted the bank to reduce the amount held in cash against credit card losses by $1 billion.
Such stability was not reflected in the mortgage market, however. The home loan market remains volatile, while investors are believed to be considering suing the bank for money lost on mortgages, causing the bank to increase its reserved against litigation by $2.3 billion.






