JPMorgan (JPM) Has Cakewalk in Q3; Mitigates CIO Losses, Bolsters Capital Position
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JPMorgan (NYSE: JPM) shares are higher Friday morning as it kicks off the third-quarter 2012 reporting season for large financials.
Ahead of the bell, JPMorgan said it earned $1.40 per share for the three-months ended September 30, 2012. CEO Jamie Dimon noted that there were several significant items that affected profitability in the quarter, including benefits from reduced mortgage loan losses, regulatory charge offs in its Real Estate Portfolio, and litigation expenses. Excluding about $1.509 billion of post-tax earnings reductions and adding in $1.788 billion of post-tax benefits, EPS slimmed to $1.36. Bloomberg had EPS at $1.46 excluding debit valuation adjustments (“DVA”).
In either case, the Street was looking for EPS of $1.20.
Revs ex-DVA were $25.86 billion on a managed basis, versus the consensus of $24.07 billion.
It terms of capital standing, JPMorgan noted:
Overall, JPMorgan said third-quarter losses on credit trades from the CIO unit were "modest."
Investment Banking revs slipped 1 percent to $6.277 billion, with net income down 4 percent. Ex-DVA, net income was about $1.7 billion, up $1.2 billion over the prior year. Real Estate portfolio revs fell 13 percent, with adjusted net charge-offs down from $899 million last year to just $595 million.
Ahead of the bell, JPMorgan shares are indicated for a higher open.
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Ahead of the bell, JPMorgan said it earned $1.40 per share for the three-months ended September 30, 2012. CEO Jamie Dimon noted that there were several significant items that affected profitability in the quarter, including benefits from reduced mortgage loan losses, regulatory charge offs in its Real Estate Portfolio, and litigation expenses. Excluding about $1.509 billion of post-tax earnings reductions and adding in $1.788 billion of post-tax benefits, EPS slimmed to $1.36. Bloomberg had EPS at $1.46 excluding debit valuation adjustments (“DVA”).
In either case, the Street was looking for EPS of $1.20.
Revs ex-DVA were $25.86 billion on a managed basis, versus the consensus of $24.07 billion.
It terms of capital standing, JPMorgan noted:
- Basel I Tier 1 common was at 10.4 percent, from 9.9 percent prior;
- Estimated Basel III Tier 1 common up 0.5 points to 8.4 percent; and
- Loan loss reserves of $23 billion
Overall, JPMorgan said third-quarter losses on credit trades from the CIO unit were "modest."
Investment Banking revs slipped 1 percent to $6.277 billion, with net income down 4 percent. Ex-DVA, net income was about $1.7 billion, up $1.2 billion over the prior year. Real Estate portfolio revs fell 13 percent, with adjusted net charge-offs down from $899 million last year to just $595 million.
Ahead of the bell, JPMorgan shares are indicated for a higher open.
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