JPMorgan (JPM) Falls After Disappointing Q4 Results
Tweet Send to a Friend
Get Alerts JPM Hot Sheet
Trade JPM Now!
Shares of JPMorgan (NYSE: JPM) are falling 2.5% in pre-open trading Friday after reporting roughly in-line fourth quarter EPS on lower than expected revenues with nearly all units showing a drop in revenue and profit.
The banking giant reported net income of $3.7 billion, down form $4.8 billion last year. Earnings per share in the quarter was $0.90, in-line with the Wall Street consensus.
Revenues were $22.2 billion, versus the consensus of $23 billion.
Commenting on the quarter, CEO Jamie Dimon said: "The Firm's returns on tangible common equity1 for the fourth quarter of 2011 and the full year 2011 were 11% and 15%, respectively. We believe these returns were reasonable given the environment, although the return for the fourth quarter was modestly disappointing. Several significant items affected the Firm’s fourth-quarter results, including a $567 million pretax DVA loss which reflected the tightening of the Firm’s credit spreads. As we have consistently said, whether positive or negative, we do not consider DVA reflective of the underlying operations of the company."
Investment banking revenue in the quarter dropped from $6.21 billion last year to $4.358 billion. Investment banking net income fell 52% $726 million versus $1.5 billion last year.
In retail banking net income was $533 million, compared with $459 million in the prior year. Net revenues in retail banking was $6.395 billion down from $7.7 billion.
Consumer & Business Banking reported net income of $802 million, a decrease of $150 million, or 16%, compared with the prior year. Net revenue for Consumer & Business Banking was $4.3 billion, down 2% from the prior year.
Mortgage Production and Servicing reported a net loss of $258 million, compared with net income of $330 million in the prior year.
Real Estate Portfolios reported a net loss of $11 million, compared with a net loss of $823 million in the prior year.
In card services and auto net income was $1.1 billion, a decrease of $497 million, or 32%, compared with the prior year. The decrease was driven by a $1.7 billion lower reduction in the allowance compared with the prior year, predominantly offset by lower net charge-offs.
In commercial banking, net income was $643 million, an increase of $113 million, or 21%, from the prior year. The improvement was driven by a decrease in the provision for credit losses and higher net revenue.
In Treasury and Securities, net income was $250 million, a decrease of $7 million, or 3%, from the prior year. Compared with the prior quarter, net income decreased by $55 million, or 18%, primarily driven by higher Global Corporate Bank (“GCB”) credit allocation expense and provision for credit losses.
In asset management net income was $302 million, a decrease of $205 million, or 40%, from the prior year. These results reflected lower net revenue, partially offset by lower noninterest expense.
In corporate/private-equity net income was $223 million, compared with net income of $29 million in the prior year.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The banking giant reported net income of $3.7 billion, down form $4.8 billion last year. Earnings per share in the quarter was $0.90, in-line with the Wall Street consensus.
Revenues were $22.2 billion, versus the consensus of $23 billion.
Commenting on the quarter, CEO Jamie Dimon said: "The Firm's returns on tangible common equity1 for the fourth quarter of 2011 and the full year 2011 were 11% and 15%, respectively. We believe these returns were reasonable given the environment, although the return for the fourth quarter was modestly disappointing. Several significant items affected the Firm’s fourth-quarter results, including a $567 million pretax DVA loss which reflected the tightening of the Firm’s credit spreads. As we have consistently said, whether positive or negative, we do not consider DVA reflective of the underlying operations of the company."
Investment banking revenue in the quarter dropped from $6.21 billion last year to $4.358 billion. Investment banking net income fell 52% $726 million versus $1.5 billion last year.
In retail banking net income was $533 million, compared with $459 million in the prior year. Net revenues in retail banking was $6.395 billion down from $7.7 billion.
Consumer & Business Banking reported net income of $802 million, a decrease of $150 million, or 16%, compared with the prior year. Net revenue for Consumer & Business Banking was $4.3 billion, down 2% from the prior year.
Mortgage Production and Servicing reported a net loss of $258 million, compared with net income of $330 million in the prior year.
Real Estate Portfolios reported a net loss of $11 million, compared with a net loss of $823 million in the prior year.
In card services and auto net income was $1.1 billion, a decrease of $497 million, or 32%, compared with the prior year. The decrease was driven by a $1.7 billion lower reduction in the allowance compared with the prior year, predominantly offset by lower net charge-offs.
In commercial banking, net income was $643 million, an increase of $113 million, or 21%, from the prior year. The improvement was driven by a decrease in the provision for credit losses and higher net revenue.
In Treasury and Securities, net income was $250 million, a decrease of $7 million, or 3%, from the prior year. Compared with the prior quarter, net income decreased by $55 million, or 18%, primarily driven by higher Global Corporate Bank (“GCB”) credit allocation expense and provision for credit losses.
In asset management net income was $302 million, a decrease of $205 million, or 40%, from the prior year. These results reflected lower net revenue, partially offset by lower noninterest expense.
In corporate/private-equity net income was $223 million, compared with net income of $29 million in the prior year.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- J.P. Morgan (JPM) CEO Dimon Might Have Enough Votes to Stay Chairman - NY Times
- JPMorgan Chase & Co. (JPM) Declares $0.38 Quarterly Dividend; 2.8% Yield
- Agilent (A) Tops Q2 EPS by 9c, Trims FY13 Outlook; Adds to Buyback, Will Cut Jobs
Create E-mail Alert Related Categories
Earnings, Hot Earnings, Hot ListRelated Entities
JPMorgan, Jamie Dimon, Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
