Delinquencies Down; JP Morgan 1Q Profits Rise; Hiring to Follow

What a difference a year can make. The improving economy in 2010 now has J.P. Morgan Chase & Co.’s (JPM) growing earnings again, with loan delinquencies declining, and steadily decreasing allocations for bad loans.

On Wednesday the second-largest bank in the U.S. said that its net income rose by 55% from a year earlier and that its provisions for credit losses on all the loans it manages shrunk by 30% — an improving metric that helped overall results in several of its business units.

“There is clear and broad based improvement” in the economy in the U.S. and around the world, possibly resulting in a “strong recovery,” said JPM Chairman Jamie Dimon. “Chances of a double dip [recession] are rapidly going away.”

But perhaps the best news for the battered financial sector was Dimon’s announcement that J.P. Morgan has plans to hire at least 9,000 new staff in the U.S., and aims for further additions worldwide.

With these types of results, it is not hard to imagine an economy that is on track to net more than 4M new jobs by year end.

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