JPMorganhas put its "London Whale" trading losses behind it, but the question now is how much money the bank can make from its regular operations, Dick Bove, Rochdale Securities bank analyst, told CNBC’s “ Squawk Box ” on Monday.
The losses could get bigger, Bove said “but there’s a good chance that you may actually see a profit coming out of the residuals from this trade.” (Related: The World's Safest Banks ).
According to Bove, “The core issue should be how much money can this company make from its operations. And I think in the second half of this year, it’s not going to make that much money.”
Bove said the underlying numbers at JPMorgan Currencies were not all that great in the second quarter.
The bank posted second-quarter net income of $4.96 billion, or $1.21 a share, compared with $5.43 billion, or $1.27 a share a year earlier.
The $4.4 billion trading loss after taxes reduced earnings per share by 69 cents in the quarter, the company said. JPMorgan said it cleaned up its Chief Investment Office, which made the disastrous credit bets, and that any problems were isolated to the group.Page 1 of 2 | Next Page