JP Morgan profit up a third as London Whale effect fades

JP Morgan has posted a 33 per cent rise in profits, ahead of expectations as the US’s biggest bank put the “London Whale” trading losses of last year behind it.

The bank’s net income in the first quarter of 2013 rose to $6.53bn (£4.25bn), from $4.92bn a year ago, JP Morgan revealed today.

Last year’s results had been hit by losses from the London Whale credit derivatives fiasco, which cost the bank over $6bn overall.

The bank’s corporate and private equity unit, which included the derivates losses, earned $250m in the period, compared with a $1.02bn loss in the first quarter of last year.

However, other aspects of the figures were not so positive. Revenue fell four per cent to $25.12bn, as interest income fell. And ignoring certain accounting benefits, corporate and investment banking income fell 2 percent to $2.5bn

JP Morgan boss Jamie Dimon said the results were “a very good start to the year” although loan growth was slowing down in the current quarter.

Shares in the bank are trading just under one per cent down in pre-market trading.