JPMorgan Chase & Co. reported second-quarter 2009 net income of USD2.7 billion, an increase of 36% compared with net income of USD2.0 billion in the second quarter of 2008.
Earnings per share were USD0.28, compared with USD0.53 in the second quarter of 2008. Current-quarter earnings per share reflected a one-time, non-cash reduction in net income applicable to common stockholders of USD1.1 billion, or USD0.27 per share, resulting from repayment of TARP preferred capital.
We are pleased that, despite a continued difficult economic environment, we were able to report USD2.7 billion in earnings and record revenue of almost USD28 billion. Of particular note, the Investment Bank reported record overall revenue for the first half of the year, which included record fees and Fixed Income Markets revenue for this quarter. In addition, Commercial Banking, Asset Management, Treasury & Securities Services and Retail Banking each delivered another quarter of solid performance. These results were negatively affected by the continued high levels of credit costs in Consumer Lending and Card Services, which we expect will remain elevated for the foreseeable future, says Jamie Dimon, chairman and chief executive officer.
Even after further strengthening our credit reserves by USD2 billion to USD30 billion and repaying the USD25 billion of TARP capital, the firm ended the quarter with a very strong Tier 1 Capital ratio of 9.7% and a Tier 1 Common ratio of 7.7%. With these additions to reserves, we now have an extremely high loan loss coverage ratio of 5%.
Throughout this crisis, we have remained committed to doing our part to help bring stability to the communities in which we operate and to the financial system overall. During the quarter, we maintained our efforts to support economic recovery and to help keep people in their homes. We continued to lend, extending approximately USD150 billion in new credit to consumer and corporate customers. We approved 138,000 trial mortgage modifications, bringing total foreclosures prevented since 2007 to 565,000 a number we expect to continue to grow, continues Dimon.
While we do not know if the economy will deteriorate further, we feel confident that, with our strong capital and reserve levels and significant earnings power, we can continue to reinvest in our businesses and do well for our clients, communities and shareholders over the long term.
L.D.