JP Morgan Chase chief executive Jamie Dimon warned that it would ‘take some time’ to sort out the bank’s mortgage mess

JP Morgan Chase chief executive Jamie Dimon warned that it would “take some time” to sort out the bank’s mortgage mess as the Wall Street firm reported better-than-expected quarterly results.

The first US investment bank to report results for the second quarter, JP Morgan posted a 13% rise in profits to $5.4bn (£3.34bn) from $4.8bn a year ago, despite ongoing mortgage problems and lacklustre trading results. Revenues climbed 7% to $27.4bn, against expectations of $25.1bn.

Dimon pointed to a top-ranked performance in global investment banking, which posted a $2.1bn profit, and record revenues in commercial banking.

Another factor was that the bank did not have to pay the one-time tax on investment banker bonuses in London again which cost it 14 cents a share in profits last year.

However, Dimon sounded a cautious note on the bank’s mortgage business.

“We have already incurred significant costs, charged-off substantial amounts and established significant reserves for mortgage-related issues,” he said. “Unfortunately, it will take some time to resolve these issues and it is possible we will incur additional costs along the way. However, in time, these costs will normalise as well.”

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