JPMorgan (JPM) Tops Views as Investment Bank Revs Drop; Dimon Cautions of 'Challenging' Environment
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JPMorgan (NYSE: JPM) shares are trading slightly stronger pre-market Thursday, following solid results from the New York, NY-based financial giant.
Revenue on a managed basis for the bank came in at $24.37 billion, up just 0.1 percent from the same period last year, and beating views calling for $23.73 billion. Reported revs in the quarter came in slightly lighter, at $23.76 billion.
Net income in both cases fell 3.5 percent to $4.262 billion, or $1.02 per share. The number exceeded expectations calling for earnings of 96 cents per share.
JPMorgan's Basel II tier 1 capital ratio for the quarter ended September 30th was 12.1 percent, with tier 1 common capital ratio of 9.9 percent. The firm has estimated Basel III tier 1 common capital ratio of 7.7 percent.
Total JPMorgan credit reserves remained relatively flat compared with the prior quarter at $29.0 billion, resulting in a JPMorgan coverage ratio of 3.7 percent of total loans.
"All things considered, we believe the Firm’s returns were reasonable given the current environment...our shareholders should rest assured that we are being extremely cautious while navigating through this challenging economic environment," CEO Jamie Dimon commented. "We are working hard to meet all of the requirements of the new and complex regulatory environment, and we continue to invest in the future while remaining focused on serving our clients and communities around the world."
Dimon also said, "The Investment Bank’s revenue, excluding the DVA gain, was down substantially." According to JPMorgan, Investment Banking revs grew 0.3 percent to $6.369 billion, from $5.353 in Q310. However, the number dropped 13 percent from $7.314 billion the previous quarter.
Further, credit card sales volume, excluding Commercial Card, was up 10 percent compared with the prior year. Commercial Banking reported continued loan growth, including middle-market loan balances up 18 percent compared with the prior year, and record deposit balances of $180.3 billion were up 31 percent compared with the prior year.
In Treasury & Securities Services, trade finance loans increased 69 percent to $30.1 billion, and deposit2 balances increased 41 percent to $341.1 billion. Corporate/Private Equity results were negatively affected by market conditions.
Checking accounts totaled 26.5 million, down 2 percent compared with the prior year, driven by the attrition of converted WaMu Free Checking accounts, and up 1 percent from the prior quarter.
Mortgage loan originations were $36.8 billion, down 10 percent from the prior year and up 8% from the prior quarter. Retail originations (branch and direct to consumer) were $22.4 billion, up 17 percent from the prior year and 8% from the prior quarter, and the Retail distribution channel reported record revenue for the quarter.
Assets under management reflected net inflows of $11 billion for the 12 months ended September 30, 2011. For the quarter, net outflows were $8 billion; this included $10 billion of outflows from liquidity products, partially offset by net inflows of $2 billion to long-term products.
JPMorgan shares are up about 0.8 percent pre-market Thursday.
Revenue on a managed basis for the bank came in at $24.37 billion, up just 0.1 percent from the same period last year, and beating views calling for $23.73 billion. Reported revs in the quarter came in slightly lighter, at $23.76 billion.
Net income in both cases fell 3.5 percent to $4.262 billion, or $1.02 per share. The number exceeded expectations calling for earnings of 96 cents per share.
JPMorgan's Basel II tier 1 capital ratio for the quarter ended September 30th was 12.1 percent, with tier 1 common capital ratio of 9.9 percent. The firm has estimated Basel III tier 1 common capital ratio of 7.7 percent.
Total JPMorgan credit reserves remained relatively flat compared with the prior quarter at $29.0 billion, resulting in a JPMorgan coverage ratio of 3.7 percent of total loans.
"All things considered, we believe the Firm’s returns were reasonable given the current environment...our shareholders should rest assured that we are being extremely cautious while navigating through this challenging economic environment," CEO Jamie Dimon commented. "We are working hard to meet all of the requirements of the new and complex regulatory environment, and we continue to invest in the future while remaining focused on serving our clients and communities around the world."
Dimon also said, "The Investment Bank’s revenue, excluding the DVA gain, was down substantially." According to JPMorgan, Investment Banking revs grew 0.3 percent to $6.369 billion, from $5.353 in Q310. However, the number dropped 13 percent from $7.314 billion the previous quarter.
Further, credit card sales volume, excluding Commercial Card, was up 10 percent compared with the prior year. Commercial Banking reported continued loan growth, including middle-market loan balances up 18 percent compared with the prior year, and record deposit balances of $180.3 billion were up 31 percent compared with the prior year.
In Treasury & Securities Services, trade finance loans increased 69 percent to $30.1 billion, and deposit2 balances increased 41 percent to $341.1 billion. Corporate/Private Equity results were negatively affected by market conditions.
Checking accounts totaled 26.5 million, down 2 percent compared with the prior year, driven by the attrition of converted WaMu Free Checking accounts, and up 1 percent from the prior quarter.
Mortgage loan originations were $36.8 billion, down 10 percent from the prior year and up 8% from the prior quarter. Retail originations (branch and direct to consumer) were $22.4 billion, up 17 percent from the prior year and 8% from the prior quarter, and the Retail distribution channel reported record revenue for the quarter.
Assets under management reflected net inflows of $11 billion for the 12 months ended September 30, 2011. For the quarter, net outflows were $8 billion; this included $10 billion of outflows from liquidity products, partially offset by net inflows of $2 billion to long-term products.
JPMorgan shares are up about 0.8 percent pre-market Thursday.
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