“Banking giants J.P. Morgan Chase & Co. and FleetBoston Financial Corp. reported disappointing second-quarter earnings as a result of weak capital markets and significant write-downs in venture capital,” writes Jathon Sapsford in today’s Wall Street Journal.

“J.P. Morgan Chase, the No. 2 U.S. lender after Citigroup Inc., said net income — after accounting for the considerable costs linked to its year-end merger — was $378 million, or 18 cents a share, for the quarter ended June 30. That compares with $1.6 billion, or 83 cents a share, on a pro forma basis, in the second quarter a year earlier.”

“Trading revenue at J.P. Morgan was down 24% from the first quarter and down 11% on the year. Overall, the company, formed in December by the merger of J.P. Morgan & Co. and Chase Manhattan Corp., saw revenue decline 13% to $6.9 billion from $7.9 billion a year earlier.”

“Excluding venture-capital losses and merger-related charges, J.P. Morgan said it posted earnings of 64 cents a share, compared with 79 cents a share in the year-earlier quarter. That is below analyst expectations of 65 cents a share, according to a mean estimate of analysts surveyed by Thomson Financial/First Call.”

” ‘We are not satisfied with our financial results,’ said J.P. Morgan Chief Executive William B. Harrison. J.P. Morgan also said the board has approved the repurchase of $6 billion of common stock. At 4 p.m. in New York Stock Exchange composite trading Wednesday, J.P. Morgan was up $1.28 at $43.58.”

“FleetBoston reported earnings of $531 million, or 48 cents a share, compared with $971 million, or 87 cents a share, in the same period in 2000. The No. 7 bank, citing a weak economy, also warned that per-share earnings could be as much as 17% below expectations for the year.”

“FleetBoston Chief Financial Officer Eugene McQuade told analysts that he expected the bank to report per-share operating earnings of $2.75 to $2.85 for the year. He projected $3.60 to $3.90 a share for next year. Analysts had expected $3.31 a share this year and $3.73 a share in 2002.”

“On the Big Board Wednesday, FleetBoston rose $1.55 to $38.80.”