Story updated with additional information..



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JPMorgan Chase

(JPM) - Get Report

beat Wall Street's earnings expectations by reporting a profit gain of almost 13% compared to the previous year.

The banking giant earned net income of $5.4 billion, or $1.27 a share for the second quarter, compared with the $4.8 billion, or $1.09 a share it earned in the same quarter a year-ago. The bank reported revenue at $27.4 billion, up from $25.13 billion during the second quarter of 2010.

Analysts had expected JPMorgan to report earnings of $1.21 a share on revenue of $25.1 billion, according to Thomson Reuters.

"We are pleased to report that our results for the quarter reflected continued improvement in credit trends across our consumer and wholesale portfolios," JPMorgan CEO Jamie Dimon said in a statement. "With respect to our mortgage portfolio, delinquency and net charge-off trends improved modestly compared with the prior quarter; however, net charge-offs remained high, and we expect credit losses to remain elevated. We have been working hard to fix our problems and address past mistakes. We have already incurred significant costs, charged-off substantial amounts and established significant reserves for mortgage-related issues. Unfortunately, it will take some time to resolve these issues and it is possible we will incur additional costs along the way. However, in time, these costs will normalize as well."

Dimon added that if the bank's performance continues to improve share buybacks would be on the table.

"We maintained our fortress balance sheet, ending the second quarter with a Basel I Tier 1 Common ratio of 10.1%," Dimon explained. "Our strong and growing capital base enabled us to buy back $3.5 billion of stock during the second quarter, and we will continue to buy back stock opportunistically."

JPMorgan shares were closed at $39.52 in Wednesday trading ahead of its Thursday conference call at 9 a.m.

--Written by Christopher Westfall in New York.