JPMorgan Ends 13 Pct Higher as 2Q Results Beat Expectations

Net income at the New York-based bank fell more than 50 percent in the quarter to $2 billion, or 54 cents per share, compared to $4.2 billion, or $1.20 in the same quarter a year ago. Analysts polled by Thomson Financial had expected a net income of 44 cents per share.

"Our earnings were down significantly due to the unfavorable credit environment and market conditions," said JPMorgan chief executive Jamie Dimon in a statement. "The Investment Bank took additional markdowns on leveraged loans and mortgage-related positions.

JPMorgan had revenues of $19.7 billion, down 1 percent from a year ago. Analysts had expected $16.5 billion in revenue.

Shares of the company rose $4.86, or 13.52 percent to $40.80 in late afternoon trading on the New York Stock Exchange.

JPMorgan set aside $1.3 billion to cover future loan losses. The bank also wrote down about $1.1 billion of unsold buyout loans and mortgage investments. During the quarter, JPMorgan acquired collapsed investment bank Bear Stearns for $2.2 billion. Overall the purchase led to a loss of $540 million, the bank said.

The company has also raised about $6 billion in capital to bolster its balance its balance sheet.

Looking ahead Dimon stated he expects the economic environment will continue "to continue to be weak and to likely get weaker and for the capital markets to remain under stress."