JPMorgan (JPM) to Be Most-Profitable U.S. Bank in 2011
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With JPMorgan (NYSE: JPM) set to be the first bank to report fourth-quarter results Friday, January 13th, investors are anticipating the firm will be the most profitable U.S. bank in 2011.
The Street is currently modeling for annual adjusted earnings of $18.5 billion, what would be a 6 percent increase over the same period in 2010. Considering shares fell about 15.7 percent through calendar 2011, or 25 percent from its annual high of 46.36, that 6 percent gain is all the more impressive.
However, amid all the hoopla, JPMorgan may still report a 23 percent drop in adjusted profit for the fourth quarter. Analysts on the Street are currently expecting net income near $3.75 billion, or 91 cents per share. Estimates were recently taken down following a statement from CEO Jamie Dimon saying quarter-over-quarter trading would be "flat" in the fourth quarter.
Investment banking has been hit the hardest at JPMorgan; as the bank positioned itself for increased capital ratio requirements (Basel) and fielded investor concerns over Greece, revenue for the arm slipped from $8.2 billion in the first quarter to just $4.5 billion in the third quarter.
Revenue in the quarter should slip 13 percent to $23.05 billion, while annual revs will drop 4 percent to about $99.91 billion.
Ahead of the results, shares of JPMorgan are down 0.7 percent to $36.41 Thursday morning.
The Street is currently modeling for annual adjusted earnings of $18.5 billion, what would be a 6 percent increase over the same period in 2010. Considering shares fell about 15.7 percent through calendar 2011, or 25 percent from its annual high of 46.36, that 6 percent gain is all the more impressive.
However, amid all the hoopla, JPMorgan may still report a 23 percent drop in adjusted profit for the fourth quarter. Analysts on the Street are currently expecting net income near $3.75 billion, or 91 cents per share. Estimates were recently taken down following a statement from CEO Jamie Dimon saying quarter-over-quarter trading would be "flat" in the fourth quarter.
Investment banking has been hit the hardest at JPMorgan; as the bank positioned itself for increased capital ratio requirements (Basel) and fielded investor concerns over Greece, revenue for the arm slipped from $8.2 billion in the first quarter to just $4.5 billion in the third quarter.
Revenue in the quarter should slip 13 percent to $23.05 billion, while annual revs will drop 4 percent to about $99.91 billion.
Ahead of the results, shares of JPMorgan are down 0.7 percent to $36.41 Thursday morning.
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