JPMorgan Reports 2Q Earnings Increase

JPMorgan Chase & Co., New York, has reported net income of $4.2 billion ($1.20 per share) for the second quarter, up from $3.5 billion ($0.99 per share) a year earlier, and the company's mortgage banking operations recorded net income of $71 million.A year earlier, the mortgage banking operations had recorded a net loss of $7 million. The company said mortgage production revenue totaled $463 million in the second quarter, up $261 million from that of a year earlier. The production revenue surge reflected a 41% rise in mortgage originations (which totaled $44.1 billion) and the classification of certain origination costs as expense due to the adoption of Statement of Financial Accounting Standards 159. Net mortgage servicing revenue totaled $170 million, up from $116 million in the second quarter of 2006. The company also reported that it strengthened the reserve for its home equity lending portfolio during the quarter. The company can be found online at http://www.jpmorganchase.com.