JPMorgan's (JPM) Braunstein Lays Out Plans for Further Cuts
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During JPMorgan’s (NYSE: JPM) annual investor day, Douglas Braunstein, the bank's chief financial officer, told investors managers need to cut roughly $10 billion more from its reserve for bad loans. Before the conference, the banks reserve for bad loans totaled about $27.6 billion.
Mr. Braunstein did not provide an exact time frame in which the company looks to reduce the size of the reserve, but did highlight JPMorgan has already cut its exposure to Greece, Italy, Spain and other European countries over the past two months to $15 billion.
Over 2012 JPMorgan does look to continue to invest in itself, while making sure costs remain flat on a year over year basis. The bank hopes to increase its return on tangible common equity to 16 percent in 2012, a 1 percent increase over 2011.
The company also recently provided a breakup of how it receives its trading revenue. Management noted, in a typical quarter, the bank generates $375 million from credit trading and $350 million each from interest-rate swaps and foreign-exchange spot and futures trading. JPMorgan also sees roughly $325 million due to cash qualities and $300 million from asset-backed securities.
Mr. Braunstein did not provide an exact time frame in which the company looks to reduce the size of the reserve, but did highlight JPMorgan has already cut its exposure to Greece, Italy, Spain and other European countries over the past two months to $15 billion.
Over 2012 JPMorgan does look to continue to invest in itself, while making sure costs remain flat on a year over year basis. The bank hopes to increase its return on tangible common equity to 16 percent in 2012, a 1 percent increase over 2011.
The company also recently provided a breakup of how it receives its trading revenue. Management noted, in a typical quarter, the bank generates $375 million from credit trading and $350 million each from interest-rate swaps and foreign-exchange spot and futures trading. JPMorgan also sees roughly $325 million due to cash qualities and $300 million from asset-backed securities.
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