JPMorgan Chase says its profit sank 53 percent in the second quarter on rising defaults in mortgages and other loans.

The bank also lost more than half a billion dollars due to Bear Stearns, the ailing investment bank it bought in March with the help of the government.

The New York-based bank said Thursday it earned $2.00 billion, or 54 cents per share, in the April to June period. That’s down from $4.23 billion, or $1.20 per share, in the same timeframe last year.

JPMorgan Chase & Co. has taken a $3.46 billion provision for credit losses, which included a $1.3 billion build in reserves. Its investment bank wrote down $1.1 billion.

Thomson Financial says analysts had predicted a profit of 44 cents share.