J.P. Morgan Turns a Profit, With a Frown

It is only January, but the nation's beleaguered banks are sending a grim message about 2009: Don't expect things to get better soon.

J.P. Morgan Chase & Co., the biggest U.S. bank in stock-market value and widely considered one of the healthiest, reported a 76% drop in fourth-quarter net income, which fell to $702 million, or seven cents a share.

While many investors were relieved to see the New York bank eke out even a slim profit by recent standards, some of its core operations are likely to deteriorate even further as economic woes ...