	j p morgan jpm net hurt by brazil trading j p morgan and co inc said its first quarter ings fell by pct largely reflecting its previously announced decision to place on non accrual status its billion dlrs of medium and long term loans to brazil that decision spurred by brazil s suspension of interest payments on february reduced the quarter s net income by mln dlrs to mln dlrs compared with mln in the first three months of morgan also reported a loss of mln dlrs from securities underwriting and trading in contrast to a gain of mln dlrs in the year earlier period in the fourth quarter of morgan posted other trading losses of mln dlrs because of setbacks in the trading and underwriting of euromarket securities conditions in some sectors of the euromarket remained difficult last quarter with floating rate notes suffering heavy price falls but a spokeswoman was unable to say whether morgan s trading losses were restricted to the euromarket on the positive side morgan reduced its provision for loan losses to mln dlrs from mln a year earlier foreign exchange trading income rose to mln dlrs from mln and trust income increased to mln dlrs from mln morgan said other operating income mainly fees and commissions rose to mln dlrs from mln but net investment securities gains dropped to mln from mln net interest ings were mln dlrs in the first quarter down from mln a year earlier and net yield fell to pct from pct if brazil had not been placed on non accrual which means that interest can be recorded as income only when payments are actually received net interest ings would have been mln dlrs and net yield pct if brazil does not resume payments net would be cut by mln dlrs morgan added after the provision for loan losses morgan s allowance for credit losses at the end of march totaled mln dlrs compared with mln at end and mln a year earlier it reported net recoveries of six mln dlrs after charge offs of eight mln compared with net charge offs of mln dlrs after recoveries of three mln a year earlier excluding brazil non accruing loans at quarter s end were mln dlrs down from mln at end and mln a year earlier non interest expenses rose to mln dlrs from mln dlrs with more than half the increase related to personnel costs morgan said reuter 
