JPMorgan Chase has reported a net income of $2.4 billion for the first quarter of 2008, compared with net income of $4.8 billion for the same quarter in 2007.
Earnings per share of $0.68 was down 49%, compared with the earnings per share of $1.34 posted in the comparable quarter of 2007.
JPMorgan said that its investment bank had markdowns related to leveraged lending and mortgages and increased loan loss reserves. Meanwhile, retail financial services again increased loan loss reserves related to home equity and subprime mortgages, as performance in these portfolios continued to deteriorate.
The firm also added $2.5 billion to its allowance for credit losses which now totals $12.6 billion, and maintained an 8.3% tier one capital ratio.
Jamie Dimon, chairman and CEO of JPMorgan Chase, said: Our earnings this quarter were down significantly as market conditions and the credit environment remained challenging.