For the whole bank, JP Morgan reported net income of $5 billion in the second three months of the year, contrasting with a loss of $471 million a year ago and a re-stated Q1 figure of $36 million.

The New York-listed banking giant achieved the profit on $22.89 billion of revenues in the second quarter, contrasting with an earnings drop of $4.518 billion in the same three months of 2011. JP Morgan reported total assets under management of $1.347 trillion at the end of the quarter, compared with $1.342 trillion a year ago.

The bank said that among “peripheral” European states such as Greece and Spain, it had a net exposure of $6.3 billion at the end of the quarter. It had a Tier 1 capital ratio, as under the Basel rules, of 8.3 per cent.

Earlier this year, it was revealed that the bank had suffered losses of $2 billion, which had prompted a blunt apology from chief executive Jamie Dimon. Ina Drew stepped down as head of the chief investment office. The losses have hit the image of a blue-blooded Wall Street firm that, unlike many of its peers, had seemed to emerge almost stronger from the 2008 financial turmoil. The issue has also reignited debate on how large banking firms should be structured to protect depositors.

Commenting on today’s results, the bank noted there had been “significant risk reduction” allowing the firm to move substantially all remaining synthetic credit positions to the investment bank. The CIO synthetic credit group has been shut down.

JP Morgan said the restatement of first quarter figures will cut its previously-reported net income for the 2012 first quarter by $459 million. The restatement relates to valuations of certain positions in the synthetic credit portfolio in the firm's Chief Investment Office.