JPMorgan Profit Drops 23 Percent

    In this July 12, 2011 photo, JP Morgan Chase and Company sign at its Manhattan headquarters, New York, is shown. JPMorgan Chase & Co.'s second-quarter income rose 13 percent as the bank collected higher fees from equity and debt underwriting in its investment banking business. The bank also cut losses in its credit card portfolio. (AP Photo/Bebeto Matthews)

    Bebeto Matthews / AP Photo

    JPMorgan on Friday reported a 23 percent decrease in profits for the last three months of 2011 as a result of big losses in its investment-banking and trading divisions. JPMorgan, the nation’s largest bank by assets, said it earned $3.7 billion, down from $4.8 billion in the same period in the previous year—a decrease of 23 percent. Net income from the bank dropped 52 percent to $726 million, which includes a $567 million drop that occurred from a debit-valuation adjustment. JPMorgan claimed that without those adjustments, there would be $1.1 billion earnings in its banking division. Net income from the bank dropped 40 percent to $302 million in the fourth quarter. JPMorgan CEO Jamie Dimon said in a statement that the bank is seeing signs of improvement in loan demand and credit quality.

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