JPMorgan Chase & Co, the biggest US bank, said it had generated $4.4 billion (€3.6 billion) of credit trading losses in its London offices, but posted overall profit that was barely dented by the trades.

The bank lost money on bad derivatives trades in its chief investment office, but said the events were isolated to the CIO, and that it has overhauled the group.

JPMorgan's overall net income was $4.96 billion, or $1.21 a share, compared with $5.43 billion, or $1.27 a share, a year earlier. Results for both periods included special items.

The derivative loss after taxes reduced earnings per share by 69 cents, the company said.

The shares fell 1.4 per cent in trading before the New York Stock Exchange opened.

Reuters