The first quarter of 2012 is an improvement for JP Morgan Chase. It turned a profit of $1.2 billion, which is ahead of its fourth quarter numbers for the previous year. Earnings were down 23% compared with the prior year. The large drop in earnings is due to higher provision for credit losses, which was driven by a lower reduction in the allowance for loan losses. Earnings were also down at the parent bank.
The bank is focusing on the promising numbers from 2012s first quarter. According to Jamie Dimon, chairman and chief executive officer, the return on tangible common equity for the first quarter of 2012 was 16% and only 11% in the prior quarter.
Dimon also touts that the bank has provided $4 billion of credit to small business, which is up 35% from the last year. Chase has also completed almost half a million mortgage modifications since 2009.