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JP Morgan traders lift its earnings

JP MORGAN Chase will today report third quarter earnings significantly above last year, as strong trading in its investment banking operations offsets rising loan losses.<br /><br />Analysts are expecting the bank to report quarterly earnings of $0.49 per share, well above the $0.11 per share seen in the same period of last year, due to a 68.3 per cent increase in revenues to $24.8bn (&pound;15.6bn).<br /><br />The group will be buoyed by another strong performance from its investment bank, which recorded revenues of $7.3bn in the second quarter, up from $5.5bn in the previous year&rsquo;s third quarter.<br /><br />However, the company is likely to warn that loan losses are still rising, after chief executive Jamie Dimon said during the summer that the company&rsquo;s credit card business was unlikely to make money in 2010.<br /><br />Credit card losses could rise from 10 per cent to 11.5 per cent in the third quarter, according to Deutsche Bank analyst Matt O&rsquo;Connor, pushing credit losses to $8bn, matching the second quarter.<br /><br />Dimon has visited London in recent days to reassure staff that the unit is still key to the bank&rsquo;s operations, following the surprise departure of the co-head of investment banking, London-based Bill Winters.<br />