US shares soared in early trading today after JPMorgan Chase, the US investment bank, revealed second quarter trading ahead of analysts' expectations despite a 52 per cent fall in profits.

The Dow Jones industrial average was 71.6 points higher by mid morning, at 11,310.8, marking the second day that US stocks have been lifted by a positive results announcement from a US bank.

Yesterday, the Dow Jones ended more than 200 higher as Well Fargo, the US bank, revealed plans to increase its dividend. In London, the FTSE 100 index closed up 135.7 points at 5286.3.

Profits during JP Morgan's second quarter more than halved to $2 billion on mortgage related writedowns and the cost of rescuing rival, Bear Stearns, earlier this year.

Revenue fell 3 by per cent to $18.4 billion, above expectations of $16.6 billion in turnover for the second quarter.

JP Morgan has so far posted more than $10 billion of writedowns and losses on mortgage related assets. However, its asset writedowns are smaller than rivals such as Citigroup which has written down $43 billion.

The bank increased credit reserves by $1.3 billion to cover bad loans and wrote down the value of leveraged loans and mortgage-related assets by $1.1 billion.

The acquisition of Bear Stearns resulted in a $540 million loss.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax