Proactiveinvestors USA & Canada JPMorgan Chase & Co https://www.proactiveinvestors.com Proactiveinvestors USA & Canada JPMorgan Chase & Co RSS feed en Mon, 20 May 2019 21:44:55 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - JPMorgan Chase and Citigroup beat Wall Street's 3Q earnings forecasts while Wells Fargo falls short ]]> https://www.proactiveinvestors.com/companies/news/206982/jpmorgan-chase-and-citigroup-beat-wall-street-s-3q-earnings-forecasts-while-wells-fargo-falls-short-206982.html JPMorgan Chase (NYSE:JPM), the first big US bank to report, zipped past Wall Street’s forecasts for the third quarter as its booming retail banking business made up for a slowdown in bond trading.

America's biggest bank by assets got the quarterly earnings season off to a strong start by reporting that its earnings came in at $8.38 billion, or $2.34 per share, which represents a 24% rise from the $6.73 billion it earned in the year-ago quarter.

Analysts had expected the bank to earn $2.25 per share.

Its revenue, meanwhile, amounted to $27.8 billion, which was up from the $26.452 billion reported in the year-ago quarter, and more than the $27.44bn expected by analysts.

“JPMorgan Chase delivered strong results this quarter with top-line growth in each of our businesses,” chief executive Jamie Dimon said. “The US and the global economy continue to show strength, despite increasing economic and geopolitical uncertainties, which at some point in the future may have negative effects on the economy.”

The weak spot for the bank was its fixed-income revenue, which came in at $2.84 billion, dropping 10% from the year-ago quarter and falling short of the $2.96 billion expected by analysts.

Elsewhere, the bank’s consumer and community banking division excelled, posting a 10% jump in year-on-year revenue to $13.29 billion and seeing its net income climb 60% to $4.086bn, helped by recent changes to the US tax code.

Investors cheered the results, sending JPMorgan Chase shares up 1.2% in Friday’s morning trading session to $109.27.

Citigroup posts mixed results, but shares rise

Unlike the House of Morgan, Citigroup (NYSE:C) posted a mixed showing in the third quarter as its earnings beat the Street’s estimates while its revenue fell short.

Citigroup reported profits of $4.6 billion, or $1.73 per share, which exceeded the consensus estimate of $1.69 per share. Its revenue, meanwhile, came in at $18.39 billion, which just missed the $18.5 billion predicted by analysts.

Like JP Morgan Chase, Citi was helped by cutting costs and tax code changes, as its tax rate in the quarter came to 24% compared to 31% in the year-ago quarter.

Revenue at the bank’s global consumer bank jumped 2% to $8.65bn from the year-ago quarter, helped by a surge in business in Mexico. Revenues from Latin America drove profits higher, climbing 10% to $2.725 billion year-on-year while revenues from North America, the bank’s biggest profit center, fell 5% to $8.46 billion.

Net interest margin, a key measure of bank profitability, came in at 22.7 percent, which met Wall Street’s predictions.

“Our results this quarter showed solid year-over-year revenue growth across many of our businesses, including Fixed Income, Treasury and Trade Solutions, Securities Services, the Private Bank and our consumer franchise in Mexico,” Citi CEO Michael Corbat said in a statement.

Citigroup shares jumped 3.3% to $70.62 in Friday’s morning trading session.

Hit by lending slowdown, Wells Fargo misses mark in 3Q

Wells Fargo (NYSE:WFC) reported that its quarterly profit missed the mark set by Wall Street, hampered by a slowdown in lending growth, while its revenue came in ahead of estimates.

While the pick-up in interest rates provides a boost to banks' profitability, it is impeding the taking out of loans as borrowers face higher mortgage rates.

In the third quarter, the number of loans at the San Francisco bank dropped 1% to $942.3 billion.

Its earnings, meanwhile, came in at $6.01 billion, or $1.13 per share, which was 32% higher than the net income of $4.54 billion posted in the year-ago quarter.  The results fell short of the consensus estimate of $1.20 per share.

Its revenue of $21.9 billion just exceeded the Street’s forecast of $21.8 billion and was essentially flat from the year-ago quarter, with the only pick-up in sales coming from its community banking division.

Wells Fargo is battling to restore its credibility with customers following its fake-accounts opening scandal, which has put a drag on its performance compared to other banks.

Wells Fargo shares traded 2% higher at $52.46 on Friday.

PNC beats Street's forecasts, but fails to please investors

PNC Financial Services Group (NYSE:PNC) also came in on the winning side of the Street’s earnings forecasts, but saw its expenses jump and the average size of its loans flatten.

The US regional lender posted earnings of $1.4 billion, or $2.82 per share, up from $1.126 billion, or $2.16 in the year-ago quarter. Analysts had expected earnings of $2.72 per share. Its revenue, meanwhile, came in nearly 6%  higher at $4.36 billion

Elsewhere, its average loans came in at $223.3 billion, up about 2% from the year-ago quarter, but flat from the previous period.

Commercial loans in the quarter also just inched up to $149.9 billion from $146.9 billion, as borrowers balked at loan terms in the face of higher rates.

Investors came away disappointed as PNC shares slipped 3.4% to $127.08 in Friday’s morning trading session.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Fri, 12 Oct 2018 07:54:00 -0400 https://www.proactiveinvestors.com/companies/news/206982/jpmorgan-chase-and-citigroup-beat-wall-street-s-3q-earnings-forecasts-while-wells-fargo-falls-short-206982.html
<![CDATA[Media files - Daily CryptoCann™ Report: London Stock Exchange welcomes its first crypto company; a marijuana breathalyzer is in the works ]]> https://www.proactiveinvestors.com/companies/stocktube/10052/daily-cryptocann-report-london-stock-exchange-welcomes-its-first-crypto-company-a-marijuana-breathalyzer-is-in-the-works-10052.html Mon, 06 Aug 2018 15:39:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10052/daily-cryptocann-report-london-stock-exchange-welcomes-its-first-crypto-company-a-marijuana-breathalyzer-is-in-the-works-10052.html <![CDATA[News - Daily CryptoCann™ Report: London Stock Exchange welcomes its first crypto company; a marijuana breathalyzer is in the works ]]> https://www.proactiveinvestors.com/companies/news/202314/daily-cryptocann-report-london-stock-exchange-welcomes-its-first-crypto-company-a-marijuana-breathalyzer-is-in-the-works-202314.html The London Stock Exchange welcomed its first crypto company.

Crypto mining company Argo Mining offered 156 million shares, raising around US$32.5mln in its IPO, according to a CoinDesk report.

The company provides more accessible access to cost-intensive crypto mining by offering a subscription service.

"Argo's admission to the London main market is a major step in the company's development and will put us in a strong position to execute our long-term growth strategy," said Argo Mining CEO Jonathan Bixby said in a filing.

READ: Goldman Sachs to begin Bitcoin futures trading, says the cryptocurrency is not a fraud

Cryptocurrency is slowly making its way into the mainstream, but JPMorgan & Chase Co (NYSE:JPM) CEO and crypto naysayer Jamie Dimon is still not on board.

The CEO reiterated his stance on cryptocurrency while at the Aspen Institute’s 25th Annual Summer Celebration Gala, calling it a “scam” and saying that he had “no interest” in digital currency, according to a Bloomberg report.

Dimon was more concerned about the treasury yield, telling investors to be prepared for the 10-year bond yield to be at 5 percent or higher.

He forecast that the current bull market could continue for two to three more years.

The Cann Report

The name Wrigley is synonymous with chewing gum. William Wrigley Jr II, former CEO of his family’s candy empire before it was sold to Mars Inc, is shifting gears to medical marijuana.

Wrigley helped start-up Surterra Wellness raise US$65mln in an investment round, bringing the total funds raised so far to US$100mln, according to a Bloomberg report.

“When I understood the massive benefits, it really changed my mind about the industry,” said Wrigley in an interview with Bloomberg. “You don’t see too many opportunities to have that kind of an impact in an industry that is being created from scratch.”

The medical cannabis start-up in based in Georgia with licenses to operate in Florida and Texas.

READ: CV Sciences is growing a cannabis-based business that's making headway on the pharma and consumer levels

As marijuana legalization spreads, there are some new safety concerns cropping up, including driving while under the influence of marijuana.

A California company named Hound Labs is looking to address the potential problem by designing a marijuana breathalyzer.

"THC is something like a billion times less concentrated than alcohol. That's why it hasn't been done before because it's really hard,” said Hound Labs CEO Mike Lynn in an interview with NPR.

Seven states have set guidelines as to how much THC is considered to be a dangerous amount, but the rest of the country has yet to make that determination.

The device is also designed to double as an alcohol breathalyzer. Police in a few cities, including Boston, will start field testing the devices in the fall.

 

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Mon, 06 Aug 2018 12:14:00 -0400 https://www.proactiveinvestors.com/companies/news/202314/daily-cryptocann-report-london-stock-exchange-welcomes-its-first-crypto-company-a-marijuana-breathalyzer-is-in-the-works-202314.html
<![CDATA[News - JPMorgan Chase, PNC Financial post robust 2Q results as Wells Fargo misses estimates ]]> https://www.proactiveinvestors.com/companies/news/200775/jpmorgan-chase-pnc-financial-post-robust-2q-results-as-wells-fargo-misses-estimates-200775.html JPMorgan Chase & Co (NYSE:JPM) delivered a robust start to the second-quarter earnings season by outshining its competitors.

The New York bank, which is the largest US lender by assets, posted earnings per share of US$2.29 and revenue of US$27.7bn as it is still reaping the benefits of a vibrant economy and tax changes. Its net income climbed 18%, meanwhile, to US$8.3bn.

The consensus Wall Street estimate had been for the bank to earn earnings per share of US$2.22 on revenue of US$27.6bn.

“The healthy US consumer drove double-digit growth in client investment assets, card sales and merchant processing volumes,” said Jamie Dimon, JP Morgan’s chairman and chief executive in a statement.

“Capital markets were open and active, leading to strong fee and market revenue performance,” he added.

The bank’s net revenue from its consumer and business banking group was up 17% to US$6.1bn from the same period last year, lifted partly by higher deposit margins.

Revenue from markets also proved resilient in the quarter, jumping 13% from last year to US$5.4bn as its derivatives business fared particularly well. JP Morgan’s investment banking fees also soared 17% to US$2.2bn.

JPMorgan shares were flat in morning trade at US$107.24.

Wells Fargo

Wells Fargo (NYSE:WFC), the third-biggest US bank, meanwhile, reported a fall in profits in its second quarter as it struggled to rebound from its regulatory compliance problems.

The bank reported net income of US$5.19bn or 98 cents per diluted share, falling short of Wall Street’s estimate of US$1.12 per share. That figure also represented a drop from last year when the bank reported $5.86bn in the comparable quarter.

Its revenue also dropped to $21.6bn in the quarter from $22.2bn in the year-ago period, which just missed analysts' consensus estimate of US$21.68bn.

Wells Fargo has been engaged in a battle to bolster its reputational credibility and rebound from its recent crisis involving fake bank and credit card accounts.

An asset cap by the Federal Reserve, which is curtailing Wells Fargo’s ability to grow, is likely to extend until the first half of next year. The asset cap was introduced as part of an enforcement action taken by the Fed against the bank earlier this year.

Wells Fargo shares slipped 2.1% in early trade to US$54.85 in response to its quarterly performance.

Citigroup

Citigroup Inc (NYSE:C) shares also slipped in pre-market trade, despite reporting a 16% jump in net income in the second quarter.

The New York bank disappointed investors as it missed on revenue expectations, posting revenue of US$18.469bn, which was not as high as the US$18.512bn expected by Wall Street.

Its earnings per share swung to US$1.63, which was more than 25% higher than last year’s comparable quarter and superior to the consensus estimates of US$1.56.

The bank’s performance continued to be buoyed by the tax reforms introduced last year, which have slashed its corporate tax rate to 24% from 32% in the year-ago quarter.

One strength was the bank’s custody-banking business which posted an 11% jump in revenues to $2.3bn. Its overall banking revenues jumped 6% from last year to US$5.2bn as growth across an array of businesses offset a decline in its investment banking business.

Revenues from investment banking fell 7% to US$1.4bn while private bank revenues climbed 7% to US$848mln, fueled by new clients as well as improved spreads on deposits.

Citigroup shares slipped 2.2% to US$67.04 in morning trade.

PNC Bank

Looking to the smaller players, PNC Financial Services (NYSE:PNC), the first regional bank to post earnings this season, reported a sizzling set of results that crushed analysts’ consensus estimate thanks to a boost in lending and favorable tax changes.

PNC reported second-quarter earnings of US$2.72 per share on revenue of US$4.32bn, trouncing Wall Street’s penciled-in figures of earnings per share of US$2.58 on revenue of US$4.25bn.

“We grew fee income and net interest income, expanded our margin, managed expenses well and maintained stable credit quality,” said Bill Demchak, PNC’s chairman, president and CEO, in a statement.

The bank’s net income, meanwhile, climbed 24% to US$1.35bn from US$1.09bn in the year-ago quarter.

Another bright spot was the bank’s commercial lending, an important revenue driver, which jumped 3% from a year ago, with average commercial lending balances growing $1.5bn. The bank’s average loans also rose US$1.6bn in the second quarter to US$222.7bn compared with the first quarter.

PNC shares were flat at $137.46 in early trade.

First Republic Bank

Another small lender First Republic Bank, which is based in San Francisco, put up a command performance in the second-quarter on the back of growth in mortgages and deposits.

The bank posted earnings of US$1.20 per share on revenue of US$866.9mln, trouncing the consensus estimates of US$1.15 per share on revenue of US$734mln.

First Republic's shares were up slightly at US$99.23 in morning trade.

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Fri, 13 Jul 2018 09:11:00 -0400 https://www.proactiveinvestors.com/companies/news/200775/jpmorgan-chase-pnc-financial-post-robust-2q-results-as-wells-fargo-misses-estimates-200775.html
<![CDATA[News - JPMorgan and the German government squash rumors of a potential investment in Deutsche Bank ]]> https://www.proactiveinvestors.com/companies/news/200292/jpmorgan-and-the-german-government-squash-rumors-of-a-potential-investment-in-deutsche-bank-200292.html Rumors have been swirling around JPMorgan Chase & Co (NYSE:JPM) and Deutsche Bank (NYSE:DB), suggesting that the US bank was interested in a stake in the German giant.

German magazine WirtschaftsWoche said that JPMorgan and the Industrial and Commercial Bank of China were interested in investing in Deutsche Bank, according to a Reuters report.

The publication alleged that Chancellor Angela Merkel met with Alex Weber, the chairman of Swiss bank UBS and the former head of Bundesbank.

JPMorgan and the German government have squashed the gossip, stating that there is no truth to the claims.

"We are denying the story, it is not true,” stated a JPMorgan spokeswoman.

"We were astonished to learn about the report about a supposed conversation between the chancellor and Mr. Weber. It is purely speculative and cannot be confirmed,” said government spokesman Steffen Seibert in a news conference.

Seibert added that the German government has full trust in the flagship bank.

Shares of JPMorgan were up slightly to US$104.45 while shares of Deutsche Bank were up nearly 4% to US$11.52 in Friday pre-market trading.

 

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

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Fri, 06 Jul 2018 08:40:00 -0400 https://www.proactiveinvestors.com/companies/news/200292/jpmorgan-and-the-german-government-squash-rumors-of-a-potential-investment-in-deutsche-bank-200292.html
<![CDATA[News - JPMorgan beats market consensus with strong 1Q revenue from equity trading ]]> https://www.proactiveinvestors.com/companies/news/194949/jpmorgan-beats-market-consensus-with-strong-1q-revenue-from-equity-trading-194949.html JPMorgan Chase & Co. (NYSE:JPM) reported earnings on Friday that beat on both the top and bottom line, with a big jump in profitability on the back of strong trading results and an improving interest-rate environment.

The bank reported first quarter March 2018 earnings of US$2.37 per share on revenue of US$32.3bn. The Earnings Whisper number was US$2.31 per share. There was plenty of good news in J.P. Morgan's quarterly earnings report with revenue growing 16.8% on a year-over-year basis.

READ: JP Morgan shares ease premarket after corporate investment banking numbers disappoint

J.P Morgan shares were up over 1% at US$114.60 in pre-market trading.

Bank earnings season kicked off Friday with J.P Morgan, Citigroup, and Wells Fargo reporting first-quarter results.

Markets revenue grew overall by 7%, excluding items, helped by a 25% growth in stock trading.

"2018 is off to a good start with our businesses performing well across the board, driving strong top-line growth and building on the momentum from last year," J.P Morgan CEO Jamie Dimon said in a statement.

"The global economy continues to do well, and we remain optimistic about the positive impact of tax reform in the U.S. as business sentiment remains upbeat, and consumers benefit from job and wage growth," added Dimon.

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Fri, 13 Apr 2018 07:42:00 -0400 https://www.proactiveinvestors.com/companies/news/194949/jpmorgan-beats-market-consensus-with-strong-1q-revenue-from-equity-trading-194949.html
<![CDATA[News - JPMorgan boss sees US tax cuts lifting wages, creating jobs and boosting economy ]]> https://www.proactiveinvestors.com/companies/news/190640/jpmorgan-boss-sees-us-tax-cuts-lifting-wages-creating-jobs-and-boosting-economy-190640.html JPMorgan Chase & Co (NYSE:JPM) chairman and chief executive Jamie Dimon reckons the US tax reforms will boost the economy, create more jobs and lift wages.

"I think it's possible you're going to hit 4% (annual economic growth) some time this year," Dimon said in an interview with CNBC from the World Economic Forum in Davos.

"I promise you, we are going to be sitting here in a year and you all will be worrying about inflation and wages going up too high."

President Donald Trump has vowed to create 25 million new American jobs in the next decade and return to 4% economic growth.

Dimon backs corporate tax cuts

Dimon thinks this is achievable following the tax overhaul, which includes cutting the corporate tax rate to 21% from 35%.

"I can't believe that people think having an uncompetitive tax system is a good thing," he said.

"The real benefit comes over time. Competitive taxes [will lead to] more capital, more jobs, more companies investing here."

On the back of the new legislation, Dimon said the bank will spend US$20bn over the five years to raise hourly pay for employees. JP Morgan will also open branches in new US locations.

"We're adding sales people, opening more branches," he said. "We think it is good for J.P. Morgan, and we think it's going to be very good for the economy."

JPMorgan could move more than 4,000 jobs after Brexit

In the UK, however, Dimon said the bank will cut its 16,000 UK workforce by more than a quarter if Brexit talks result in a divergence of regulations and trade agreements with the European Union.

Dimon told the BBC he could move more than 4,000 jobs out of Britain.

"If we can't find reciprocal recognition of rules - and there are a lot of people who are mad with the Brits for leaving and want their pound of flesh - then it could be bad,” he said. 

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Thu, 25 Jan 2018 13:34:00 -0500 https://www.proactiveinvestors.com/companies/news/190640/jpmorgan-boss-sees-us-tax-cuts-lifting-wages-creating-jobs-and-boosting-economy-190640.html
<![CDATA[News - JP Morgan shares ease premarket after corporate investment banking numbers disappoint ]]> https://www.proactiveinvestors.com/companies/news/189954/jp-morgan-shares-ease-premarket-after-corporate-investment-banking-numbers-disappoint-189954.html JP Morgan Chase & Co (NYSE:JPM) saw its shares fall in premarket trade after the company’s mixed fourth quarter results failed to impress the market, with corporate and investment banking revenue falling below market expectations.

In a statement, the banking giant said CIB revenue dropped 12% to US$7.48bn, below market consensus for US$7.91bn.

New one-time repartriation tax on income kept abroad

In the fourth quarter, net income fell 32% to US$2.3bn, while banking revenue rose 10% to US$3.1bn, led by the 10% hike in investment banking revenue.

In the period, markets and investor services revenue dropped 22% to US$4.4bn, hit by the 26% drop in markets revenue.

Fixed income markets revenue fell 34% while equity markets was flat, the company said.

The biggest US bank by assets, recorded a US$2.4bn charge to cover a new one-time repatriation tax on income it has kept abroad and to adjust the value of its deferred tax assets and liabilities.

Net profit, adjusted to exclude the tax charge and other one-time items, came in at US$6.7bn or US$1.76 per share, above Wall Street expectations for US$1.69.

In premarket trade, JPM was down 0.97% at US$110.84.

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Fri, 12 Jan 2018 08:14:00 -0500 https://www.proactiveinvestors.com/companies/news/189954/jp-morgan-shares-ease-premarket-after-corporate-investment-banking-numbers-disappoint-189954.html
<![CDATA[News - JP Morgan edges lower as dip in trading revenues outweighs earnings beat ]]> https://www.proactiveinvestors.com/companies/news/185510/jp-morgan-edges-lower-as-dip-in-trading-revenues-outweighs-earnings-beat-185510.html JP Morgan Chase & Co (NYSE:JPM) comfortably beat Street expectations with its third quarter earnings, but a big drop in trading revenue has hit the share price early on Thursday.

Chairman and chief executive Jamie Dimon warned last month that trading revenues could fall by as much as 20% compared to the same quarter last year.

He wasn’t far wrong as overall trading revenue slumped by 16% in the three months through to the end of September, with most Wall Street banks suffering from a lack of volatility in the markets.

Fixed income trading revenues were down by almost a third, with JP Morgan noting that “lower revenue across all products was driven by sustained low volatility and tighter credit spreads”.

Equities trading revenue fell 4% compared to 2016’s relatively strong quarter, and reflected “lower revenue in derivatives predominantly offset by strength in Prime Services and Cash Equities”.

On the banking front JP Morgan fared a little better. Its consumer and community banking division increased revenues by 6% to US$12bn, while its corporate and investment banking arm saw revenues rise 5% to US$3.1bn.

That helped total revenues to come in at US$26.2bn, comfortably ahead of the US$25.2bn analysts had expected. There was also a beat in earnings per share which came in at US$1.76 versus forecasts of US$1.65.

"For the first time, the Firm led the nation in total US deposits, as consumers and businesses continue to view us as their partner of choice," Dimon said.

"The global economy continues to do well and the U.S. consumer remains healthy with solid wage growth.

"Unfortunately, natural disasters in the US and abroad have impacted many of our customers and we have responded with enormous financial support as well as the expertise and generosity of our employees to help these customers, clients and communities."

JP Morgan shares were down 0.6% to US$96.28 in early deals on Thursday.

--Updates for share price--

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Thu, 12 Oct 2017 07:43:00 -0400 https://www.proactiveinvestors.com/companies/news/185510/jp-morgan-edges-lower-as-dip-in-trading-revenues-outweighs-earnings-beat-185510.html
<![CDATA[News - JP Morgan Chase & Co, Citigroup, Dominos Pizza Inc and more - PRE-MARKET ]]> https://www.proactiveinvestors.com/companies/news/185509/jp-morgan-chase-co-citigroup-dominos-pizza-inc-and-more-pre-market-185509.html US stocks reached new highs at the close, but are set to start lower, according to futures. The big banks are a sector in focus in pre-market.

Behemoth JP Morgan (NYSE:JPM) is a stock in play in pre-market and shares fell 0.75% as traders focused on a big drop in trading revenue.

JPMorgan's profit rises, bond trading slumps https://t.co/VgP2GOz9Gx pic.twitter.com/wXRZPLVtB8

— Reuters Top News (@Reuters) 12 October 2017 Against the consensus, earnings per share (EPS) were US$1.76 against US$1.65 on revenues of US $26.2bn compared to consensus of US$25.23bn.

Fixed income trading revenue fell 27% to US$3.16bn, which was worse than the US$3.25bn, which had been projected by Wall Street.

Citigroup Inc (NYSE:C) shares  lost 0.59% after hours at US$ 74.50 as Wall Street expects the firm to post EPS of US$1.29 in the latest quarter.

From banks to pizzas and analysts expect Dominos Pizza Inc (NYSE:DPZ) to report earnings in the three months of US$1.22 per share on revenue of $623.20mln  before the opening bell. Domino's shares nudge  1.55% lower after the bell to stand at US$206.

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Thu, 12 Oct 2017 07:41:00 -0400 https://www.proactiveinvestors.com/companies/news/185509/jp-morgan-chase-co-citigroup-dominos-pizza-inc-and-more-pre-market-185509.html
<![CDATA[News - JP Morgan told to pay widow US$4bn for mismanaging estate settlement ]]> https://www.proactiveinvestors.com/companies/news/184760/jp-morgan-told-to-pay-widow-us4bn-for-mismanaging-estate-settlement-184760.html JP Morgan Chase & Co (NYSE:JPM) has been ordered to pay more than US$4bn in damages to the widow of a former American Airlines Group Inc (NASDAQ:AAL) executive.

Jo Hopper hired the bank to administer the US$19mln estate of her late husband Max back in 2010 after his sudden death from a stroke.

However, instead of doing its job, a Dallas jury found that JP Morgan committed fraud, breached its fiduciary duty and broke a fee agreement.

The court heard how it took years for assets to be released, so long that in some cases stock options expired.

The bank also ignored requests from Mrs Hopper to sell certain shares and used the estate’s proceeds to pay its legal fees.

“The bank took years to release basic interests in art, home furnishings, jewellery and notably Mr Hooper’s collection of 6,700 golf putters and 900 bottles of wine,” read a statement from Hopper’s attorneys.

“Even today some assets – now more than seven years after Mr Hopper’s death – still have not been released to Mrs Hooper.”

JP Morgan has said it believes the verdict will be overturned.

Shares were up 0.1% to US$95.27 in pre-market trade on Thursday.

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Thu, 28 Sep 2017 08:14:00 -0400 https://www.proactiveinvestors.com/companies/news/184760/jp-morgan-told-to-pay-widow-us4bn-for-mismanaging-estate-settlement-184760.html
<![CDATA[News - US investment titan JP Morgan Chase in frame as it makes Worldpay approach ]]> https://www.proactiveinvestors.com/companies/news/180327/us-investment-titan-jp-morgan-chase-in-frame-as-it-makes-worldpay-approach-180327.html US banking giant JP Morgan Chase & Co (NYSE:JPM) is one of the firms that has made an approach for global payments outfit Worldpay Group Inc (LON:WPG)

If it goes through, it would be one of the biggest deals the US bank has sealed since 2008 and the financial meltdown.

Today, Worldpay said in a statement it had received “preliminary approaches” from US card purchase processor Vantiv and JPMorgan Chase Bank.

Vantiv Inc is a US-based credit-card processor.

 

Worldpay takeover tussle sees shares surge nearly 30% https://t.co/0wHOdAVHFE

— Sky News (@SkyNews) 4 July 2017

JP Morgan already runs a European payments business, based in Ireland, and processes around 40mln credit and debit transactions a day.

 

In 2015, the group announced an overhaul of its Chase Pay product to better compete with firms like PayPal Holdings Inc and is pushing its payment app.

Meanwhile, Worldpay processes millions of payments daily in stores, online and on mobile phones, mainly across the UK and the U.S.

It was valued at £4.8bn when it floated in 2015 after its split from London listed bank RBS (LON:RBS) following the financial crisis in 2009 and profits were £264mln last year, up from £19mln in 2015.

Vantiv has been growing rapidly through small acquisitions, but a deal for Worldpay would mark a serious change of pace and make good strategic sense said analysts.

Worldpay has 400,000 merchants in 126 currencies on its books with an advanced e-commerce platform used by the global giants.

Vantiv by contrast is largely US-focused and slightly larger in market cap terms and consolidating its position through the acquisition of smaller US rivals.

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Tue, 04 Jul 2017 13:30:00 -0400 https://www.proactiveinvestors.com/companies/news/180327/us-investment-titan-jp-morgan-chase-in-frame-as-it-makes-worldpay-approach-180327.html
<![CDATA[News - US banks set for strong first quarter as JP Morgan, Citigroup and Wells Fargo kick off earnings season ]]> https://www.proactiveinvestors.com/companies/news/176389/us-banks-set-for-strong-first-quarter-as-jp-morgan-citigroup-and-wells-fargo-kick-off-earnings-season-176389.html The financial services sector is expected to deliver a strong first quarter as JP Morgan Chase & Co. (NYSE:JPM), Citigroup Inc (NYSE:C) and Wells Fargo & Co (NYSE:WFC) kick off earnings season tomorrow.

The S&P 500 Banks Index has risen 23% since early November when US President Donald Trump pledged in his election campaign to cut corporation tax and ease banking regulation.  

The index looks set for another boost as analysts expect overall profits in the sector to be 12% higher in the first quarter than a year ago.

Ahead of the opening bell in the US, JP Morgan is forecast to report a 13% increase in earnings per share (EPS)to US$1.52 on a 3.3% rise in revenue to US$24.88bn.

Citigroup is expected to post a 14% increase in EPS to US$1.24 and a 1.6% gain in revenue to US$17.83bn.

Wells Fargo & Co’s EPS is projected to fall 2.02% to $0.97, though revenue is expected to increase 0.50% to US$22.31bn.

Next week Goldman Sachs, Bank of America and Morgan Stanley report their first quarter results. 

Goldman and Bank of America to lead the way

Goldman Sachs Group inc (NYSE:GS) and Bank of America Corp (NYSE:BAC) are widely expected to be the stars of the show this season with the biggest contribution to earnings growth in the sector.  

Goldman, which reports on 17 April, is anticipated to achieve a 93% jump in EPS to US$5.17 on a 34% increase in revenue to US$8.53bn.

Bank of America reports on 18 April with analysts pencilling in 25% growth in EPS to US$0.35 and a 9.9% rise in revenue to US$21.67bn.

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Wed, 12 Apr 2017 10:53:00 -0400 https://www.proactiveinvestors.com/companies/news/176389/us-banks-set-for-strong-first-quarter-as-jp-morgan-citigroup-and-wells-fargo-kick-off-earnings-season-176389.html
<![CDATA[News - JP Morgan evaluating European cities to relocate London operations after Brexit ]]> https://www.proactiveinvestors.com/companies/news/175609/jp-morgan-evaluating-european-cities-to-relocate-london-operations-after-brexit-175609.html JP Morgan Chase & Co. (NYSE:JPM) is reportedly evaluating European cities for moving its banking activities from London after Brexit.

A group of 75 JP Morgan staff have spent the past nine months assessing European cities on such factors as employment law and the frequency of flight delays at local airports, The Wall Street Journal reported.

The news came as Prime Minister Theresa May triggered Article 50 today, kicking off the formal process for Brexit negotiations. The UK must leave the European Union by 29 March 2019.

JP Morgan is Europe’s largest investment bank. It employs 16,000 people in the UK and has concentrated much of its European corporate and investment banking activities in London.

But JP Morgan is looking to relocate its London operations after the UK exits the EU on worries about the impact of losing access to Europe’s single market.

At the moment, JP Morgan can sell products to European clients from London and set up a network of branches across the continent but this is unlikely to be the case after Brexit.

JP Morgan chief executive Jamie Dimon has said up to a quarter of the bank’s staff in the UK may have to relocate.

Other banks that have also warned that roles will have to go as a result of Brexit, include HSBC Holdings plc (LON:HSBA) and UBS Group (NYSE:UBS).

HSBC chief executive Stuart Gulliver has said 1,000 roles will move to Paris in about two years while UBS has said 1,000 of its 5,000 staff could relocate, possibly to Frankfurt or Madrid. 

JP Morgan has three European sUBSidiaries with banking licenses including a bank in Dublin, one in Luxembourg and an investment bank in Frankfurt.

The bank also has branches in several major European cities including Milan, Brussels and Amsterdam.

In 2015 a third of its $33.5bn of its investment-banking revenue came from Europe, the Middle East and Africa.

 

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Wed, 29 Mar 2017 13:51:00 -0400 https://www.proactiveinvestors.com/companies/news/175609/jp-morgan-evaluating-european-cities-to-relocate-london-operations-after-brexit-175609.html
<![CDATA[News - JP Morgan Chase & Co. banks better-than-expected profits ]]> https://www.proactiveinvestors.com/companies/news/128215/jp-morgan-chase-co-banks-better-than-expected-profits-128215.html Investment banking giant JPMorgan Chase & Co. (LON:JPM) got the industry's earnings season off to a good start with forecast-busting profits.

JP Morgan racked up profits of US$1.55 per share, against estimates of US$1.43 a share.

It also turned in better-than-expected revenue of US$25.2bn.

It attributed the performance to rising consumer deposits, lending and credit card sales.

Chief executive Jamie Dimon said: "JP Morgan Chase continued to do well in all our major businesses.

"Outside of energy, both wholesale and consumer credit quality remained very good."

The bank was the first to report in an earnings season set to be scrutinised for any impact from economic turbulence and the UK's 'Brexit' vote.

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Thu, 14 Jul 2016 10:30:00 -0400 https://www.proactiveinvestors.com/companies/news/128215/jp-morgan-chase-co-banks-better-than-expected-profits-128215.html
<![CDATA[News - Q1 earnings season drawing the curtain, says JPM ]]> https://www.proactiveinvestors.com/companies/news/126060/q1-earnings-season-drawing-the-curtain-says-jpm-126060.html The Q1 earnings season is coming to an end, with 89% of companies reporting in the US, where 74% of S&P500 companies beat EPS estimates, calculated analysts at JP Morgan.

The actual EPS growth ran at minus 8% overall and at minus 2% ex-Energy.

53% of companies beat sales estimates, with sales up 1% ex-Energy.

"US EPS revisions have turned positive recently as many expect the stabilisation in dollar and oil to help earnings into H2. We worry that the consensus hurdle rate for upcoming quarterly EPS looks very high already. Q4 estimates currently stand at $32.2, an all-time high, implying 20% increase from $26.9 in Q1," JPM analysts said

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Tue, 17 May 2016 17:25:00 -0400 https://www.proactiveinvestors.com/companies/news/126060/q1-earnings-season-drawing-the-curtain-says-jpm-126060.html
<![CDATA[News - JP Morgan shares lifted as Q4 profit beats expectations ]]> https://www.proactiveinvestors.com/companies/news/121353/jp-morgan-shares-lifted-as-q4-profit-beats-expectations-121353.html US banking titan JP Morgan Chase (NYSE:JPM) kicked off earnings season with aplomb and shares nudged higher in pre-market as it posted analyst-beating fourth quarter profits..

For the three months to December 31,2015, net profit was US$5.43 billion, or US$1.32 per share, compared to US $4.93bn for the same quarter of 2014.

Analysts had expected earnings of $1.25 a share.

Revenues in the quarter rose to US$23.75 billion against analyst expectations of US$22.89 billion.

Notably, profits in the group's investment banking business increased considerably to US$1.75 billion from US$972 million in the fourth quarter of 2014.

Chief executive Jamie Dimon told investors: " "We had a good quarter as 2015 came to a close. The businesses generated strong loan growth and credit quality, except for some stress in energy.

"The consumer business continues to gather deposits, outpacing the industry. Markets were somewhat quieter, and we saw the impact reflected in the results of our trading and Asset Management businesses.”

Dimon added: "We see exciting opportunities to invest for the future, to continue to deliver better and faster for our clients and customers.”

Ahead of the bell in New York, shares are up 1.78% to US$58.36 each.

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Thu, 14 Jan 2016 08:18:00 -0500 https://www.proactiveinvestors.com/companies/news/121353/jp-morgan-shares-lifted-as-q4-profit-beats-expectations-121353.html
<![CDATA[News - JP Morgan Chase struggles in low interest rate environment ]]> https://www.proactiveinvestors.com/companies/news/116234/jp-morgan-chase-struggles-in-low-interest-rate-environment-116234.html JP Morgan Chase (NYSE:JPM) chief executive and chairman Jamie Dimon damned his bank's third quarter update with faint praise.

Investment bank JP Morgan Chase (NYSE:JPM) posted what Dimon described as "decent results" for the the third quarter.

The July to September quarter was a challenging one for investment banks, with global markets unsettled by signs of slowing growth in China.

JPM's net income of US$6.80bn on revenue of US$23.5bn was equivalent to US$1.68 a share, though that included a US$2.2bn tax credit.

Underlying earnings of US$1.32 per share were six cents below the market consensus.

In the same quarter of 2014, the bank had made a profit of US$4.47bn on revenue of US$25.15bn, equivalent to earnings per share of US$1.35.

The results were released after the close of trading on Tuesday, and Dimon described himself in a conference call as "pretty pleased" with trading, considering how up-and-down the markets had been, while the Fed's continued policy of sticking with rock bottom interest rates meant money managers had to sweat their assets harder.

"Bottom line: it was no easy quarter; JPM seems to have maneuvered through as well as one should have expected, still generating a 'core' ROTCE of 11.4% and 3% tangible book value growth," said Swiss rival Credit Suisse.

"Sustained share price out-performance relies on continued above average ROE generation and GSIB surcharge reductions (with a manageable revenue impact) - JPM has delivered on both," the bank concluded.

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Wed, 14 Oct 2015 03:55:00 -0400 https://www.proactiveinvestors.com/companies/news/116234/jp-morgan-chase-struggles-in-low-interest-rate-environment-116234.html
<![CDATA[News - JPMorgan Chase reports Q2 profit beat on lower expenses ]]> https://www.proactiveinvestors.com/companies/news/115067/jpmorgan-chase-reports-q2-profit-beat-on-lower-expenses-115067.html JPMorgan Chase (NYSE:JPM), the biggest U.S. bank by assets, reported a higher-than-expected second-quarter profit as the firm trimmed costs to offset falling trading revenue. Shares advanced in morning trading.

Net income rose to $6.29 billion, or $1.54 per share, for the June quarter, from $5.98 billion, or $1.46  per share, a year earlier, the New York-based company said in a statement today.

Analysts polled by Capital IQ had expected earnings of $1.44 per share.

Revenue fell 3.2 percent to $24.53 billion. Analysts had expected $24.49 billion. Trading revenue decreased 8.9 percent to $4.51 billion from $4.95 billion in the second quarter of 2014.

JPMorgan, like other banks, has been under pressure to cut costs because low interest rates have weighed on revenue for far longer than expected. In the meantime, regulators have demanded that banks hold more capital and hire additional staff to control risks and comply with regulations. JPMorgan said in May it would eliminate thousands of jobs and send back-office workers to cheaper locations to save money.

JPMorgan's non-interest expenses declined 6 percent to $14.50 billion in the quarter, helped by efforts to streamline its business as well as lower legal and mortgage banking expenses.

Return on equity, a measure of the J.P. Morgan’s profitability, came in at 11 percent for the second quarter, unchanged from the second quarter a year ago. 

"We've made good progress this quarter, including meeting regulatory requirements, reducing non-operating deposits, and adding to our capital," chief executive officer Jamie Dimon said in a statement. "We are also on target to deliver on our expense commitments."

Shares inched up 0.5 percent to $68.43 at 9:58 a.m. in New York, expanding this year’s gain to 9.4 percent.

Earnings at the corporate and investment bank climbed 9.9 percent to $2.34 billion on a 15 percent drop in expenses to $5.14 billion. Revenue slipped 5.8 percent from a year earlier to $8.72 billion amid sluggish fixed-income trading.

Excluding the impact of year-ago business sales, fixed-income trading revenue fell 10 percent, which the company attributed to weakness in credit and securitized products, currencies and emerging markets, offset by strength in rates.

The firm posted $2.93 billion in fixed-income trading revenue, falling short of the $3.36 billion estimate from Wells Fargo & Co.’s Matthew Burnell and $3.45 billion from Harte.

Net income from consumer and community banking rose 1.5 percent to $2.53 billion as provisions for credit losses declined 18 percent to $702 million. Revenue was $11 billion, down 4.4 percent from a year earlier.

Mortgage revenue dropped 21 percent to $1.8 billion in the quarter on lower servicing revenue.

JPMorgan is the first U.S. bank with large capital markets and investment banking operations to report for the quarter. Wells Fargo, which also reported Tuesday, reported results that matched analysts' estimates but like JPMorgan (NYSE:WFC) saw lower revenue compared to a year ago.


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Tue, 14 Jul 2015 10:08:00 -0400 https://www.proactiveinvestors.com/companies/news/115067/jpmorgan-chase-reports-q2-profit-beat-on-lower-expenses-115067.html
<![CDATA[News - JPMorgan Chase to pay $166 mln in settlements over credit-card debt probes ]]> https://www.proactiveinvestors.com/companies/news/115066/jpmorgan-chase-to-pay-166-mln-in-settlements-over-credit-card-debt-probes-115066.html JPMorgan Chase (NYSE:JPM) will pay $166 million and change credit-card collection practices after regulators found that the bank used abusive tactics to collect debts, the Consumer Financial Protection Bureau said today.

The company agreed to resolve claims that its Chase Bank USA and Chase Bankcard Services Inc. units pursued the wrong borrowers, sought incorrect amounts or so-called zombie debt that was too old, or relied on documents with improper signatures, according to a CFPB statement.

The largest U.S. bank has been accused of relying on robo-signing and other discredited methods of going after consumers for debts they may not have owed and for providing inaccurate information to debt buyers. 

Robo-signing refers to signing documents in mass quantities without reviewing records.

Of the penalties, $136 million settles claims brought by the Consumer Bureau, 47 states and the District of Columbia. 

The Office of the Comptroller of the Currency imposed a $30 million penalty in a related action, CFPB said.

The settlement is JPMorgan’s second in two years over its debt-collection practices. In September 2013, J.P. Morgan was ordered to refund $309 million to 2.1 million credit-card customers and pay $80 million in fines, at the time the largest penalty—$389 million—in a broad examination of products sold to credit-card customers. 

The bank didn’t admit or deny allegations that it harmed consumers by allegedly making errors in hundreds of thousands of debt-collection lawsuits.

J.P. Morgan addressed many of the same issues raised by the CFPB and states in a consent order with the Office of the Comptroller of the Currency, also in September 2013.

In 2011, CFPB penalized American Express Co. for falsely telling consumers that paying old debt would improve their credit scores. The company paid $112.5 million in fines and restitution. The agency has also taken action against Bank of America Corp. and Synchrony Bank over credit-card marketing.

About 77 million American consumers have debts ranging from $25 to $125,000 that are subject to collection, according to the CFPB. Most don’t know of the issues until they receive calls from debt collectors or review their credit reports, the agency said in a report this year.

 

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Wed, 08 Jul 2015 14:56:00 -0400 https://www.proactiveinvestors.com/companies/news/115066/jpmorgan-chase-to-pay-166-mln-in-settlements-over-credit-card-debt-probes-115066.html
<![CDATA[News - JPMorgan Chase to cut 2% of its workforce next year: media reports ]]> https://www.proactiveinvestors.com/companies/news/115065/jpmorgan-chase-to-cut-2-of-its-workforce-next-year-media-reports-115065.html JPMorgan Chase (NYSE:JPM) will cut 5,000 jobs of its workforce next year as part of its initiatives to reduce costs and become more efficient,  Wall Street Journal reported, citing people familiar with the situation.

Shares of JPMorgan slid 0.6 percent to $65.79 at 2:33 p.m. in New York. The stock is up 5 percent so far this year.

The most recent phase of layoffs began earlier this year and would eliminate at least 2 percent of JPMorgan's workforce, according to the newspaper.  The bank has already cut at least 1,000 of those jobs, a source told Dow Jones.

JPMorgan—which has 5,570 branches—has moved to emphasize technology and rely less on human tellers. Its chief executive officer Jamie Dimon said recently that the bank's average branch would lose one employee over the next two years. 

However, the cuts affect all of JPMorgan's major business units, the Journal reported.

The employees laid off or in consideration to be laid off range in seniority, from junior analysts up to managing directors who can often earn six- or seven-figure annual pay packages, people familiar with the bank told WSJ.

The company cut 7,900 mortgage jobs and left certain businesses last year. It has slimmed its workforce to about 240,000 employees, with cuts in 11 of the last 12 quarters, according to WSJ.

Still, JPMorgan hires about 40,000 employees annually, according to the report. 

The number of total employees may hold steady over the next year if business conditions allow hiring in areas including wealth management, a person with knowledge of the plans told Bloomberg.

Last year, JPMorgan relocated employees to less expensive space. The bank also changed third party contracts as part of its cost-cutting measures. JPMorgan expects its expenses to decline to approximately $57 billion this year from $58.5 billion in 2014.

Bank of America (NYSE:BAC), the second-biggest lender, will have to reduce expenses further in its markets division unless revenue begins to improve, chief executive officer Brian Moynihan said on Wednesday.

 

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Fri, 29 May 2015 14:42:00 -0400 https://www.proactiveinvestors.com/companies/news/115065/jpmorgan-chase-to-cut-2-of-its-workforce-next-year-media-reports-115065.html
<![CDATA[News - JPMorgan Chase Q1 profit beats on strong bond trading business; dividend boosted ]]> https://www.proactiveinvestors.com/companies/news/106296/jpmorgan-chase-q1-profit-beats-on-strong-bond-trading-business-dividend-boosted-60969.html JPMorgan Chase (NYSE:JPM), the biggest U.S. bank, posted quarterly profit that topped analysts’ estimates as revenue from bond trading improved. Shares advanced in morning trades.

Net income rose to $5.91 billion, or $1.45 per share, in the January-to-March quarter, from $5.27 billion, or $1.28 per share, a year earlier, the New York-based company said in a statement today.

Revenue increased to $24.8 billion from $23.86 billion a year ago.

Analysts on average had predicted earnings of $1.40 on revenue of $24.50 billion, according to Capital IQ.

JPMorgan, the world’s biggest investment bank, said revenue from fixed-income bond trading rose 5 percent to $4.07 billion, adjusted for the sale of businesses last year, including a commodities operation. Equity-trading revenue advanced 22 percent to $1.61 billion.

The bank said it was increasing its second quarter dividend from to $0.44 per share from $0.40 per share.

Shares advanced 1.8 percent to $63.16 at 9:33 a.m. in Toronto.

“We have an outstanding franchise which is getting safer and stronger, and is gaining market share over time,” chief executive officer Jamie Dimon said in the statement.

“We continue to build the company for the long-term, we are investing in controls, infrastructure, systems, technology, new products and bankers.”

JPMorgan also reported an after-tax charge of $487 million for legal expenses. And it set aside a total of $959 million to cover bad loans, $109 million higher than a year earlier.

Profit from consumer and community banking increased 12 percent to $2.22 billion as revenue advanced 2 percent and expenses declined 4 percent.

JPMorgan said profit in asset management increased 11 percent to $502 million. Assets under management climbed $111 billion to $1.8 trillion amid greater inflows and rising equity markets.

Commercial banking posted a 1 percent profit increase to $598 million. The division’s provision for credit losses was $61 million, up $56 million from a year earlier as the bank set aside more reserves related to loans to energy companies.

Meanwhile, Wells Fargo (NYSE:WFC), the largest mortgage lender in the U.S., reported a 2.6 percent fall in profits in the first three months of the year and set aside more money to cover bad loans. Shares fell 1.2 percent to $54.59.

 

 

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Tue, 14 Apr 2015 09:43:00 -0400 https://www.proactiveinvestors.com/companies/news/106296/jpmorgan-chase-q1-profit-beats-on-strong-bond-trading-business-dividend-boosted-60969.html
<![CDATA[News - JPMorgan posts disappointing 6.6% drop in Q4 profit on higher legal expense ]]> https://www.proactiveinvestors.com/companies/news/105041/jpmorgan-posts-disappointing-66-drop-in-q4-profit-on-higher-legal-expense-59241.html JPMorgan Chase (NYSE:JPM), the biggest U.S. bank by assets, reported a 6.6 percent drop in fourth-quarter profit, disappointing Wall Street, as legal costs exceeded $1 billion in the wake of government probes into alleged wrongdoing. Shares dropped.

Net income fell to $4.93 billion, or $1.19 per share, for the October-to-December period, from $5.28 billion, or $1.30 per share, a year ago, the New York-based bank said in a statement today. That missed the $1.31 average estimate of 25 analysts. The results for both periods included special items.

Revenue dropped 3 percent to $22.5 billion from $23.2 billion year-over-year, lagging behind Wall Street’s consensus of $23.64 billion.

The bank agreed in November to pay $1 billion in penalties over its conduct in foreign exchange markets. Investigations into that and other areas of the bank's business are continuing.

However, while legal expenses jumped to $1.1 billion in the fourth quarter, from $847 million in the same quarter last year, total legal costs of $2.9 billion for the year were far less than the $11.1 billion recorded in 2013.

Shares declined 1.5 percent to $182.11 at 8:41 a.m. in New York. The stock had lost 4.6 percent since the beginning of the month through yesterday. The stock gained 7 percent last year, trailing the 13 percent gain for the 85-company Standard & Poor’s 500 Financials Index (INDEXSP:SP500-40).

Revenue from fixed-income trading fell to $2.5 billion on the sale of a commodities unit and lower volume in credit and securitized products. Excluding the sale, fixed-income markets slipped 14 percent.

Revenue from equities trading increased 25 percent to $1.1 billion on gains in the derivatives and prime-brokerage business.

Profit at the corporate and investment bank increased 3 percent to $972 million. Excluding the impact of accounting adjustments tied to the firm’s own debt, profit at that division plunged 50 percent to $1.1 billion.

JPMorgan Chase is the first big bank to report its fourth quarter results. Also today, Wells Fargo (NYSE:WFC), the biggest U.S. mortgage lender, reported a slight increase in quarterly profit as net interest income rose.

Citigroup (NYSE:C), Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS) are scheduled to report their earnings later this week.

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Wed, 14 Jan 2015 08:53:00 -0500 https://www.proactiveinvestors.com/companies/news/105041/jpmorgan-posts-disappointing-66-drop-in-q4-profit-on-higher-legal-expense-59241.html
<![CDATA[News - JPMorgan returns to Q3 profit, but misses view; Wells Fargo matches estimates ]]> https://www.proactiveinvestors.com/companies/news/103653/jpmorgan-returns-to-q3-profit-but-misses-view-wells-fargo-matches-estimates-57409.html JPMorgan Chase (NYSE:JPM), the biggest U.S. bank, reported lower-than-expected third-quarter profit, while Wells Fargo (NYSE:WFC), the biggest U.S. home lender, posted a quarterly profit that matched analysts' estimates.

JPMorgan earned $5.6 billion, or $1.36 per share, for the quarter, compared with a loss of $380 million a year earlier. Analysts expected earnings of $1.38 per share.

JPMorgan missed estimates as high costs more than offset strength in its capital markets and lending businesses. Shares were little changed at $58.15 at 1:54 p.m. in New York.

Revenue for the quarter of $25.2 billion, up 5 percent on a year earlier. Revenue at the investment banking business fell by $600 million, with profits down by 34 percent.

Revenue at the asset management arm grew by $250 million to $3 billion, with profits up 20 percent.

"Our businesses continue to perform well," JP Morgan's chief executive officer Jamie Dimon, said in a statement today. "While challenges remain in the global economic recovery, the US economy is an exception, showing signs of steady improvement." 

"Corporate America is in good shape, with strong balance sheets, and employment trends continue to be positive."

JPMorgan, the biggest fixed-income trading firm, is grappling with sluggish activity in that market caused by central bank intervention. 

Wells Fargo's net income, meanwhile, rose 2.7 percent to $5.73 billion, or $1.02 a share, from $5.58 billion, or 99 cents, a year earlier. The bank matched estimates as fees from mortgage banking fell and lending margins narrowed. Shares of the San Francisco-based lender fell 1.3 percent to $49.54.

Wells Fargo faces slackening demand for mortgages as the housing market shifts away from a refinancing boom that propelled profits in earlier years. With interest rates still near record lows, Wells Fargo's net interest margin, a measure of profitability, has declined to the lowest in at least two decades.

Wells Fargo's third-quarter net interest margin fell to 3.06 percent, below the 3.13 percent average estimate of analysts.

Wells Fargo's revenue increased 3.6 percent to $21.2 billion from $20.5 billion a year earlier, beating the $21.1 billion average estimate of analysts.

Wells Fargo's loan portfolio increased 3.7 percent to $838.9 billion in the quarter from the same period a year earlier, led by a 13 percent jump in commercial and industrial loans. Expenses were up 1.2 percent to $12.2 billion as legal costs and foreclosure expenses increased.

Chief executive John Stumpf said the results "demonstrated strength".

"We continue to see signs of a steadily improving economy, and I remain optimistic about the opportunities ahead for Wells Fargo," he added.

 

 

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Tue, 14 Oct 2014 14:03:00 -0400 https://www.proactiveinvestors.com/companies/news/103653/jpmorgan-returns-to-q3-profit-but-misses-view-wells-fargo-matches-estimates-57409.html
<![CDATA[News - JP Morgan reveals staggering scale of security breach ]]> https://www.proactiveinvestors.com/companies/news/103521/jp-morgan-reveals-staggering-scale-of-security-breach-57210.html US investment bank JP Morgan (NYSE:JPM) has revealed the size of the security breach it suffered earlier this year was one of the largest in history.

The bank confirmed that a cyber-attack, which started in June and went unnoticed for a couple of months, gained access to the accounts of 76mln private customers and about seven million small businesses.

The bank reassured clients that there is no evidence that financial information was compromised.

The attacker downloaded details such as names, addresses (including email addresses), and phone numbers, but not critical information such as login identities, passwords, account numbers or social security codes.

The banking giant said it has yet to see “any unusual customer fraud related to this incident."

JP Morgan Chase has been working with the Federal Bureau of Investigation (FBI) and US intelligence officials to investigate the attack, which some news agencies have suggested was perpetrated by Russian criminals.

A similarly successful attack was made recently on retail giant Home Depot (NYSE:HD), while earlier in the year the chief executive of retailer Target (NYSE:TGT) walked the plank after the company’s information technology system was breached.

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Fri, 03 Oct 2014 07:46:00 -0400 https://www.proactiveinvestors.com/companies/news/103521/jp-morgan-reveals-staggering-scale-of-security-breach-57210.html
<![CDATA[News - JPMorgan jumps as Q2 net beats estimates despite lower fixed income trading business ]]> https://www.proactiveinvestors.com/companies/news/102296/jpmorgan-jumps-as-q2-net-beats-estimates-despite-lower-fixed-income-trading-business-55436.html JPMorgan Chase & Co (NYSE:JPM), the biggest U.S. bank by assets, rose in premarket trade after  saying second-quarter profit beat estimates as fixed-income trading revenue fell less than expected.

Shares gained 3.4 percent to $58.18 at 9:39 p.m. in New York. The stock had lost 3.7 percent since the beginning of the year through yesterday.

Net income declined 7.9 percent to $5.99 billion, or $1.46 per share, from $6.5 billion, or $1.60 per share, a year earlier, the New York-based firm said in a statement today. 

Revenue fell to $25.35 billion.

Wall Street was for adjusted profit of $1.31 per share on revenue of $23.8 billion.

JPMorgan warned investors in May to expect Wall Street’s trading slump and weak mortgage results to continue through the second quarter.

JPMorgan saw growth in its key business: Core lending rose 8 percent from the same time a year ago, and commercial banking rose 9 percent. But both big banks saw their revenue from trading fall. JPMorgan Chase logged $3.5 billion in bond trading in the second quarter, down 12 percent from a year previous. Stock trading revenue was down 10 percent.

JPMorgan has also redoubled its focus on wealth management and private banking business, areas that were largely untouched by the latest round of regulations. Revenue within the private bank rose 5 percent, to $1.6 billion, from the period a year earlier. The bank also wooed more client assets, bringing the total to $2.5 trillion, up 15 percent from a year earlier.

JPMorgan, the second largest U.S. mortgage lender after Wells Fargo & Co, said its profit from mortgage lending fell 38 percent to $709 million, while mortgage application volumes dropped 54 percent to $30.1 billion.

Overall U.S. mortgage lending volumes have fallen for the past 15 months as mortgage rates rise. Demand for loans was also hit by a weaker spring selling season compared with last year.

"Toward the end of the second quarter, we saw encouraging signs across our businesses including an uptick in wholesale utilization, strengthening pipelines in our commercial and business banking segments, and some improvements in markets activity," Chief Executive Jamie Dimon said in the statement.

Wells Fargo & Co. (NYSE:WFC), the most valuable U.S. bank, posted second-quarter profit last week that rose 3.8 percent on lower credit costs, while Citigroup Inc. (NYSE:C) said yesterday that net income fell 96 percent as the company agreed to pay the government $7 billion to resolve a mortgage-related probe. Bank of America Corp. (NYSE:BAC), the second-biggest U.S. lender by assets, is scheduled to report results tomorrow.

 

 

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Tue, 15 Jul 2014 09:41:00 -0400 https://www.proactiveinvestors.com/companies/news/102296/jpmorgan-jumps-as-q2-net-beats-estimates-despite-lower-fixed-income-trading-business-55436.html
<![CDATA[News - New York shares see red; JP Morgan's profits fall ]]> https://www.proactiveinvestors.com/companies/news/100789/new-york-shares-see-red-jp-morgans-profits-fall--53381.html Shares in New York started on the backfoot with really only one corporate name in focus.

The giant investment bank JP Morgan reported a lower-than-expected 19% drop in first-quarter earnings, as earnings season now begins.

The numbers were hit by weak revenue from fixed-income trading and mortgages, it said. The result missed expectations on Wall Street.

JP Morgan reported a profit of US$5.27 billion compared to US$6.53 billion a year earlier, while revenue was down 7.7% to $23.86 billion.

Meanwhile, also in focus was Wells Fargo & Co, whose Q1 results conversely beat expectations on the street.

The firm reported a healthy 14% rise in net income.

The benchmark Dow was down 68 points, at 16,103, while the tech heavy Nasdaq, which fell 3% yesterday, was down again -eight points. The S&P 500 lost 3 to go to 1,830.

Also a bit of tech news story today, amid an almost two week long sell off in the sector, Samsung launched its latest version of smartphone, the Galaxy S5, in a bid to put a bigger dent in the sales of Apple’s iPhone.

Samsung’s cheaper smartphone, which runs on Android, last year outsold the iPhone two-to-one, capturing 30% of the market, but appetite for smartphones has slowed generally now that much of the mass-market has adopted one of the two platforms.

Meanwhile, in London, FTSE 100 continued to take its cue from the US and was down over 95 points at 6,546 and is now heading for a weekly loss.

ARM Holdings (LON:ARM), the chip designer, was one of Footsie's biggest losers  - shedding 5.2%.

Airlines were also joined the laggards on Friday, with budget carrier easyJet down along with IAG.

Heathrow airport's monthly traffic statistics revealed that 5.8 million passengers passed through the airport last month - down 2.8% on 2013.

Supermarkets were having a better day after recent pressure in the sector - Morrison (LON:MRW) adding 1.47% and Sainsburys (LON:SBRY) was up a tad at 0.10%.

Low-cost African airline Fastjet (LON:FJET) was a notable riser after it said it raised £11mln in a placing and subsequently ended its equity financing facility with Darwin Strategic.

The company issued 687.5mln new shares (around 112% of the existing share capital) at 1.6p, a slight discount to the market price (1.8p at Wednesday’s close).

Directors, including chief executive Ed Winter and finance chief Angus Saunders, have accounted for around £1mln of the £11mln, while Sir Stelios Haji-Iannou’s easyGroup also invested £1mln in the placing.

Baobab Resources (LON:BAO) edged higher by 1.15% after it received encouraging results from a second round of metallurgical test work on ore from the Tenge block of its Tete pig iron project in Mozambique.

A final alloy of almost 99% iron was produced from the bench-scale beneficiation, reduction and smelting tests, far purer than required for a commercial pig iron product.

Critically, said the company, the tests indicated that titanium and vanadium could be removed from the pig iron as separate by-products.

A riser in the sector was TomCo Energy (LON:TOM), which added 6.9%, while in mining, Weatherly International (LON:WTI) added 9.52% to 0.25p.

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Fri, 11 Apr 2014 10:25:00 -0400 https://www.proactiveinvestors.com/companies/news/100789/new-york-shares-see-red-jp-morgans-profits-fall--53381.html
<![CDATA[News - JPMorgan slips as Q1 profit slumps 19% amid weak trading and mortgage business ]]> https://www.proactiveinvestors.com/companies/news/100774/jpmorgan-slips-as-q1-profit-slumps-19-amid-weak-trading-and-mortgage-business-53376.html JPMorgan Chase & Co. (NYSE:JPM), the biggest U.S. bank by assets, retreated in pre-market trading after reporting a lower-than-expected 19 percent drop in first-quarter earnings impacted by weak revenue from fixed-income trading and mortgages.

JPMorgan slipped 3.7 percent to $55.35 at 8:10 a.m. in New York. The stock had lost 3.2 percent to $57.40 at market close yesterday.

Net income decreased to $5.27 billion, or $1.28 per share, in the three months ended March 31, from $6.53 billion, or $1.59 per share, in the year-earlier period, the New York–based firm said in a statement today. Analysts on average were looking for $1.46 a share.

Total revenue decreased 7.7 percent to $23.9 billion, well below the average estimate of $24.53 billion. The bank said non-interest expenses dropped 5 percent in the January-to-March quarter to $14.6 billion.

Revenue from fixed-income declined 21 percent to $3.8 billion in the first quarter, while revenue from equity markets fell 3 percent to $1.3 billion. Mortgage revenue plunged 42 percent to 1.6 billion.

Net income from consumer and community banking declined percent to $1.94 billion as provisions for credit losses surged 49 percent to $816 million. Revenue was $10.5 billion, down 10 percent from a year earlier.

Profit in asset management declined 9 percent to $441 million as costs rose 11 percent to $2.1 billion on headcount-related expenses. Assets under management jumped 11 percent to $1.6 trillion amid greater inflows and rising equity markets. Commercial banking reported a 3 percent profit decline to $578 million.

"We have growing confidence in the economy - consumers, corporations and middle market companies are in increasingly good financial shape and housing has turned the corner in most markets...," Chief Executive Jamie Dimon said in the statement.

The bank has been pushing to improve its profitability after net income dropped 16 percent last year due to massive legal settlements and rising costs to improve compliance with laws and regulations.

JPMorgan is the first of the top U.S. banks to report results for the first quarter. Wells Fargo & Co. (WFC) posted today a 14 percent rise to $5.89 billion in first-quarter earnings as fewer customers missed loan payments.

Citigroup Inc. (NYSE:C) reports earnings on April 14, followed by Bank of America Corp. (NYSE:BAC) on April 16. Goldman Sachs Group Inc. ((NYSE:GS) and Morgan Stanley (NYSE:MS) announce results on April 17.

 

 

 

 

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Fri, 11 Apr 2014 08:48:00 -0400 https://www.proactiveinvestors.com/companies/news/100774/jpmorgan-slips-as-q1-profit-slumps-19-amid-weak-trading-and-mortgage-business-53376.html
<![CDATA[News - JPMorgan to sell physical commodities division for $3.5 bln ]]> https://www.proactiveinvestors.com/companies/news/100406/jpmorgan-to-sell-physical-commodities-division-for-35-bln-52855.html JPMorgan Chase & Co. (NYSE:JPM), the biggest U.S. bank by assets, said it will sell its physical commodities business for $3.5 billion to the energy and commodities trading company Mercuria Energy Group Ltd. Shares fluctuated.

JPMorgan will continue to provide traditional banking services and products tied to commodities including financial products, market-making and the vaulting and trading of precious metals, the New York-based bank said in a statement today.

The deal takes the bank out of industries such as petroleum products and power while cementing Mercuria’s standing among the world’s biggest commodity traders. 

"Our goal from the outset was to find a buyer that was interested in preserving the value of J.P. Morgan’s physical business,” Blythe Masters, head of J.P. Morgan’s global commodities business, said in the statement. “Mercuria is a global leader in the commodities markets and an excellent long-term home for these businesses.”

The transaction, to close in the third quarter, is not expected to have a material impact on JPMorgan Chase's earnings, the bank said.

JPMorgan is selling its multi-billion dollar physical commodities division amid fears among regulators that banks could control prices if they own commodities as well as trade them, or suffer catastrophic losses that would endanger the financial system.

Mercuria, a firm founded by former Goldman Sachs traders, has become one of the world’s four biggest independent commodities traders. It has offices in 28 countries and employs more than 1,000 people.

JPMorgan was down less than 0.1 percent to $58.02 at 10:32 a.m. in New York. The stock earlier rose as much as 0.3 percent.

 

 

 

 

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Wed, 19 Mar 2014 10:32:00 -0400 https://www.proactiveinvestors.com/companies/news/100406/jpmorgan-to-sell-physical-commodities-division-for-35-bln-52855.html
<![CDATA[News - JPMorgan Chase to trim 8,000 jobs on weak refinancing busines ]]> https://www.proactiveinvestors.com/companies/news/100048/jpmorgan-chase-to-trim-8000-jobs-on-weak-refinancing-busines-52311.html JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. bank by assets, dropped in midday trading after it unveiled plans to eliminate roughly 8,000 jobs as demand for refinancing declines.

JPMorgan slid 0.8 percent to $57.55 at 1:17 p.m. in New York.

JPMorgan said in a presentation today that the jobs to be eliminated are in the bank's consumer and mortgage banking units, Bloomberg reported.

Job reductions over the past several years at JPMorgan have been massive, even in a recovering economy. Since the start of 2013, total staff cuts at the company have numbered 24,500, the company revealed in the presentation. Back in 2013, the firm indicated it would ax up to 19,000 in the two divisions by the end of this year.

JPMorgan said that it employed 251,196 people at the end of last year -- down 7,557 from 2012.

“We now have clarity on most of the regulatory rules, and we believe that we, more than others, will successfully adapt to the new financial architecture and will emerge where we started -- with best in class margins and returns,” Chief Financial Officer Marianne Lake said at the investor conference.

The New York-based company also increased its target for annual net income to $27 billion from last year’s $18 billion as legal costs subside and higher rates increase interest income from loans and investments.

 

 

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Tue, 25 Feb 2014 13:32:00 -0500 https://www.proactiveinvestors.com/companies/news/100048/jpmorgan-chase-to-trim-8000-jobs-on-weak-refinancing-busines-52311.html
<![CDATA[News - JPMorgan to pay $614 mln to settle U.S. mortgage fraud lawsuit ]]> https://www.proactiveinvestors.com/companies/news/99730/jpmorgan-to-pay-614-mln-to-settle-us-mortgage-fraud-lawsuit-51818.html JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. bank by assets, agreed to pay $614 million to the U.S. government to settle the latest in a string of legal claims it defrauded federal agencies by underwriting sub-standard mortgage loans. Shares dropped in pre-market trade. 

U.S. District Judge J. Paul Oetken in Manhattan approved the deal, which calls for JPMorgan to pay the money within a month and install an improved quality control program to review loans it underwrites using a federally maintained software application that determines if a loan qualifies for government insurance.

The New York-based company said in a statement after market close yesterday that the "settlement represents another significant step in the firm's efforts to put historical mortgage-related issues behind it."

JPMorgan said it has already recorded reserves for the settlement and does not expect the deal to have any significant additional financial impact. JPMorgan set aside $23 billion last year to cover the settlements.

In a statement, U.S. Attorney Preet Bharara said JPMorgan had for years took part in federally subsidized programs meant to make homes more affordable for millions of Americans.

"Yet, for more than a decade, it abused that privilege," Bharara said. "JPMorgan Chase put profits ahead of responsibility by recklessly churning out thousands of defective mortgage loans, failing to inform the government of known problems with those loans and leaving the government to cover the losses when the loans defaulted."

The prosecutor acknowledged, however, that JPMorgan had accepted responsibility and promised to reform the flawed practices.

The government said the bank approved thousands of loans for government insurance or refinancing that didn't meet the requirements of federal programs and failed to self-report hundreds of loans it identified as having been affected by fraud or other deficiencies. It also regularly submitted loan data that lacked integrity because it was not based on documents or other information it possessed when employees submitted the data, the government said.

Associate Attorney General Tony West said the deal "recovers wrongfully claimed funds for vital government programs that give millions of Americans the opportunity to own a home and sends a clear message that we will take appropriately aggressive action against financial institutions that knowingly engage in improper mortgage lending practices."

Last year, JPMorgan agreed to about $20 billion in settlements in its drive to clear up legal claims. The deals covered claims over other mortgage issues, as well as derivatives and power trading.

On Monday, the company agreed to pay $1.45 million to settle four-year-old allegations brought by the US Equal Employment Opportunity Commission that the bank had maintained a sexually hostile environment for women in a mortgage loan center on Ohio.

JPMorgan is one of several banks that have faced similar allegations. Citigroup Inc. (NYSE:C) and Deutsche Bank AG (NYSE:DB) have also reached settlements, while the Justice Department is seeking $2.1 billion in penalties from Bank of America Corp (NYSE:BAC) after a jury found the bank liable for fraud over mortgages sold by its Countrywide unit.

JPMorgan shares fell 0.7 percent to $54.55 at 8:13 a.m. in New York. The stock is down 6 percent this year.

 

 

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Wed, 05 Feb 2014 09:01:00 -0500 https://www.proactiveinvestors.com/companies/news/99730/jpmorgan-to-pay-614-mln-to-settle-us-mortgage-fraud-lawsuit-51818.html
<![CDATA[News - JPMorgan Q4 results beat on lower loan-loss reserves ]]> https://www.proactiveinvestors.com/companies/news/99377/jpmorgan-q4-results-beat-on-lower-loan-loss-reserves-51233.html JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. bank by assets, reported fourth-quarter earnings that surpassed analysts' expectations, helped by lower loan-loss reserves that offset declining investment-bank revenue. Shares advanced in premarket trade. 

Net income for the three months ended Dec. 31 dropped 7.3 percent to $5.28 billion, or $1.30 a share, from $5.69 billion, or $1.39 a share, in the year-earlier period, the New York-based bank said in a statement today. 

Excluding a charge of 27 cents a share in legal costs, profit grew to $1.40 a share in the fourth quarter, from $1.35 a share a year earlier, beating the $1.35 a share average expectation of analysts polled by Reuters and the $1.37 a share average estimate of analysts surveyed by Bloomberg.

Revenue fell 1 percent to $24.1 billion, but topped analysts’ expectations.

JPMorgan took a charge of $1.1 billion in the fourth quarter to resolve some of its biggest legal headaches.

One of those legal expenses was the settlement over the bank's involvement in the Ponzi scheme of Bernard Madoff. On Jan. 8, the bank agreed to pay  $2.6 billion to settle government and private claims over its handling of Madoff accounts. It estimated then that this would subtract $850 million from fourth-quarter earnings to cover expenses that it had not accounted for in reserves.

"It was in the best interests of our company and shareholders for us to accept responsibility, resolve these issues and move forward," JPMorgan Chief Executive Officer Jamie Dimon said in the statement.

JPMorgan's legal problems have weighed on the bank's earnings. The bank posted a third-quarter loss in October, its first quarterly loss in 10 years. In November, JPMorgan paid the Justice Department a record $13 billion to resolve allegations linked to the sale of risky mortgage securities during the housing bubble. That came on the heels of a $4.5 billion settlement with institutional investors who suffered losses on mortgage securities purchased from JP Morgan in the run-up to the financial crisis.

JPMorgan continued to benefit from lower reserves for bad loans. The bank’s earnings were boosted by $775 million, or 20 cents per share, due to reduced reserves in real estate portfolios and card services.

Overall provisions for credit losses slid to $104 million last quarter from $656 million the year before. Net charge-offs totaled $1.3 billion, down from $1.8 billion the year before.

JPMorgan shares inched up 0.7 percent to $58.08 in pre-market trade at 9 a.m. The shares rallied 33 percent in 2013, ahead of the 29 percent gain in the S&P 500 (INDEXSP:.INX). The stock closed down 1.4 percent yesterday, giving the company a market value of $216.9 billion.

Earnings from the bank's corporate and investment banking division plunged 57 percent to $858 million, driven by a $1.5 billion charge from changing the valuation of some over-the-counter derivatives to incorporate funding costs. Revenue at the unit declined 21 percent to $6.02 billion.

Profit from consumer and community banking jumped 19 percent to $2.37 billion on lower provisions for bad loans and expenses. Revenue at the unit fell 8 percent to $11.3 billion.

Mortgage fees and related income plummeted 46 percent to $1.09 billion in the fourth quarter, from $2.04 billion in the year-earlier period. Home-loan originations crumbled 54 percent to $23.3 billion.

JPMorgan is the first U.S. bank to report fourth-quarter results. Wells Fargo & Co. (NYSE:WFC), the biggest U.S. mortgage lender, posted later today an 11 percent increase in fourth-quarter profit, buoyed by the elimination of thousands of jobs in its home-loan business in the second half of the year.

Bank of America Corp. (NYSE:BAC) is set to release its quarterly results tomorrow. Citigroup Inc. (NYSE:C) and Goldman Sachs Group Inc. (NYSE:GS) are scheduled to report on Jan. 16, whereas BNY Mellon (NYSE:BK) is due on Jan. 17.

All four U.S. bank industries are expected to show year-over-year growth in recurring earnings in the fourth quarter, but the Financial Conglomerates and Major Banks industries are expected to lead all groups, FactSet said in a note to clients yesterday.

 

 

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Tue, 14 Jan 2014 09:11:00 -0500 https://www.proactiveinvestors.com/companies/news/99377/jpmorgan-q4-results-beat-on-lower-loan-loss-reserves-51233.html
<![CDATA[News - JPMorgan, government agree on $13 bln settlement ]]> https://www.proactiveinvestors.com/companies/news/98579/jpmorgan-government-agree-on-13-bln-settlement-50011.html JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. bank by assets, will pay $13 billion to settle government accusations that it misled investors about mortgages it bundled and sold in the run-up to the financial crisis. Shares climbed.

In the settlement, announced today, the New York-based bank acknowledged that it made "serious misrepresentations to the public" about "numerous" mortgage-backed securities transactions. 

The settlement also covers mortgage securities sold by Washington Mutual and Bear Stearns, which J.P. Morgan bought in 2008. 

The Department of Justice said the settlement "does not absolve J.P. Morgan or its employees from facing any possible criminal charges." 

The Justice Department and the New York Attorney General's Office said it was the largest settlement with a single entity in U.S. history. It eclipses the record $4 billion levied on the huge oil company BP plc (NYSE:BP) in the worst offshore oil spill in U.S. history.

The deal is the latest chapter in the burst of the housing bubble in 2007 when bundles of mortgages sold by JPMorgan and other financial institutions left investors with billions of dollars in losses.

Even after the settlement, the bank faces at least nine other government investigations, covering everything from its hiring practices in China to whether it manipulated the Libor benchmark interest rate.

JPMorgan Chase and government agencies led by the Justice Department reached a tentative agreement in mid-October and have been hammering out details since then.

The $13 billion JPMorgan settlement amount is only about half of its record 2012 net income of $21.3 billion, or $5.20 a share, which made it one of the most profitable U.S. banks last year. Only seven companies in the Dow Jones Industrial Average earned more than $13 billion in 2012, according to Bloomberg.

Mounting legal costs from government proceedings pushed JPMorgan to a rare loss in this year's third quarter, the first under CEO Jamie Dimon's leadership. The bank reported Oct. 11 that it set aside $9.2 billion in the July-September quarter to cover the string of legal cases against the bank. JPMorgan said it has placed $23 billion in reserve to cover potential legal costs.

The six biggest U.S. banks, led by JPMorgan and Charlotte, North Carolina-based Bank of America Corp., have piled up more than $100 billion in legal costs since the financial crisis, a figure that exceeds all of the dividends paid to shareholders in the past five years, according to Bloomberg.

JPMorgan shares were up 0.6 percent at $56.09 at 3:41 p.m. in New York, extending this year's gains to approximately 28 percent.

 

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Tue, 19 Nov 2013 15:48:00 -0500 https://www.proactiveinvestors.com/companies/news/98579/jpmorgan-government-agree-on-13-bln-settlement-50011.html
<![CDATA[News - JPMorgan near record $13 bln fine: reports ]]> https://www.proactiveinvestors.com/companies/news/97988/jpmorgan-near-record-13-bln-fine-reports-49081.html JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. bank by assets, agreed to pay $13 billion to end U.S. civil probes of its mortgage-bond sales.

The bank has reached a tentative pact to free itself from mounting civil disputes with the government while leaving a criminal inquiry unresolved, Bloomberg reported, citing a person familiar with the talks.

The agreement with the Department of Justice would mark the largest amount paid by a financial firm in a settlement with the U.S.

The potential settlement with the Justice Department exceeds estimates last September that JPMorgan would end up paying as much as $11 billion over the allegations, according to the Wall Street Journal.

The payouts would cover a $4 billion accord with the Federal Housing Finance Agency over the bank’s sale of mortgage-backed securities. 

The deal, which may be announced this week, also resolves pending inquiries by New York Attorney General Eric Schneiderman.

The settlement would amount to more than half of JPMorgan’s record $21.3 billion profit last year, or 1.5 times what the firm’s corporate and investment bank set aside to pay employees during this year’s first nine months.

The outline of the tentative accord was reached during a telephone call between U.S. Attorney General Eric Holder, JPMorgan Chief Executive Officer Jamie Dimon, JPMorgan General Counsel Stephen Cutler and Associate U.S. Attorney General Tony West.

JPMorgan shares closed up 0.2 percent to $54.30 on Oct. 18, logging a three-day winning run. The stock has rallied 23 percent this year, giving the firm a market value of $204.1 billion.

 

 

 

 

 

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Mon, 21 Oct 2013 06:58:00 -0400 https://www.proactiveinvestors.com/companies/news/97988/jpmorgan-near-record-13-bln-fine-reports-49081.html
<![CDATA[News - US shares mixed as trading begins; JP Morgan in focus ]]> https://www.proactiveinvestors.com/companies/news/97866/us-shares-mixed-as-trading-begins-jp-morgan-in-focus-48867.html US shares painted a mixed picture as trading opened on Friday as traders seem unsure which way to turn.

Investors are keen to hear more on what the lawmakers come up with to solve the debt ceiling and shutdown issues and have decided to act with caution for now.

The Dow Jones gained eight to stand at 15,136, while Nasdaq and S&P500  were both down a point.

On the corporate front, JP Morgan was the talking point after it posted a loss in Q3 after putting buy US$9.2billion to cover legal costs.

JPMorgan now has a contingency fund of $23bn to cover legal expenses.

On S&P, the top riser was Safeway Inc, which gained 5.2%, while Gap Inc  lost 6.9% after it reported that September 2013 net sales were flat compared with last year. 

Meanwhile, in the UK, aided by a 30% or so instant windfall this morning for Royal Mail investors, Footsie made good ground today.

London’s main index was 48 points higher at 6,478, with talk of a compromise possible in the US debt impasse adding to the general celebratory mood.

While the developments in the US may be more important in the longer term, it was the Royal Mail’s (LON:RMG) barnstorming opening that dominated the morning.

Priced at the top end of the range at 330p, shares were changing hands at up to 460p in early trades before settling back down to about 445p in a frenzy of a dealing.

Reports suggested more than 100mln shares changed hands in the first hour, with demand sufficient to crash wealth management group’s Hargreaves Lansdown’s website.

Anyone who applied and received the minimum allocation would have banked about £270 if they had sold this morning, with demand helped by the string of institutions that reportedly failed get any allocation at all.

Royal Mail will go straight into the FTSE100 at its current price, which will also encourage buying from index tracker funds. 

Full trading in the shares starts on Tuesday.

Away from the postie frenzy, Whitbread (LON:WTB) moved to the top of the risers after Citigroup raised it price target on the coffee to hotel chain to £37.50, while its rating is now buy.

”Improved sentiment around the European economies suggests that we could be at the start of a renewed upgrade cycle for European focused hotel names,” Citi reckons. Shares rose 92p to 3,206p.

Wickes owner Travis Perkins (LON:TPK) got a boost from a bullish write-up from Liberum, though BAE Systems (LON:BA.) was a loser after its mixed trading update yesterday.

BAE may also have been affected by a profit warning from weapons maker Chemring (LON:CHG), which added it had no idea how badly it will be affected the US shutdown.

Gem Diamonds (LON:GEMD) was a riser after it sold two world-class stones unearthed at the company’s Letseng mine in Lesotho for a combined US$12.3mln.

The rare 12.47-carat blue diamond fetched a record price for Letseng of US$ 603,047 per carat, giving a total of US$7.5mln. The “exceptional quality” 82-carat white diamond fetched US$ 59,173 per carat, for a total of US$ 4.8mln. Shares rose 2% to 154p.

Shares in Baobab Resources (LON:BA.) surged after it unveiled a major investment from a main shareholder that could fund the DFS for its pig iron project in Mozambique through to completion. Redbird is wholly owned by the African Minerals Exploration & Development fund, which owns 26.73% of Baobab's voting rights. Shares were up 8%.

Amur Minerals (LON:AMC) was another riser as it said it had completed drilling on a fifth target at Kun-Manie nickel-copper sulphide project in the far east of Russia.

Coloured gemstone specialist Gemfields, (LON:GEM) meanwhile, made ground after being awarded AIM transaction of the year for 2013 for its US$90mln acquisition of Faberge. 

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Fri, 11 Oct 2013 10:12:00 -0400 https://www.proactiveinvestors.com/companies/news/97866/us-shares-mixed-as-trading-begins-jp-morgan-in-focus-48867.html
<![CDATA[News - JPMorgan's legal bills sink firm into Q3 loss ]]> https://www.proactiveinvestors.com/companies/news/97864/jpmorgans-legal-bills-sink-firm-into-q3-loss-48865.html JPMorgan Chase's (NYSE:JPM) ongoing string of court battles has taken its toll on the firm's bottom line, as $9.2 billion worth of legal bills led to a $0.4 billion or 17 cents a share loss in the third quarter.

Excluding that charge and other one-time items, the investment bank's net income came to $5.8 billion or $1.42 cents a share, handily beating the mean analyst estimate of $1.19 a share. The adjusted profit was 1.8% higher than the $5.7 billion or $1.40 a share result in the same period a year ago.

Revenue in the three-month period dipped 8% to $23.1 billion from $25.1 billion in the same prior-year period.
The provision for credit losses was $543 million, compared to $1.8 billion in the previous year's third quarter.

In JPMorgan's quarterly statement, chairman and chief executive officer Jamie Dimon said litigation charges will show up, in unpredictiable amounts, in the quarters ahead. Most of the legal expenses are associated with U.S. Justice Department claims of wrong-doing while problems surfaced at Bear Stearns and Washington Mutual, the two troubled banks that JPMorgan took over in the midst of the financial crisis.

"The Board continues to seek a fair and reasonable settlement with the government on mortgage-related issues - and one that recognizes the extraordinary circumstances of the Bear Stearns and Washington Mutual transactions, which were undertaken at the request or encouragement of the U.S. Government," Dimon said in a statement.

In the financial results broken down by unit, the consumer banking provided a boost with a 15% year-over-year jump in profit to $2.7 billion, even as its revenue sunk 13% to $11.1 billion. The volume of credit card sales spiked 11% to $107 billion. Mortgage-related net income grew 13% to $705 million.

In the corporate and investment bank division, client deposits rose 10% to $386 billion, while assets under custody reached a record $19.7 trillion. Revenue dipped 2% to $8.2 billion while profit climbed 12% to $2.2 billion.

In the commercial banking sector, revenue was flat year over year at $1.7 billion, while net income dropped 4% to $665 million.

In the asset management unit, client assets increased 11% to $2.2 trillion, while loan balances reached a record $90.5 billion and net long-term client flows came to $19 billion. Revenue rose 12% to $2.8 billion and net income increased 7% to $476 million.

On its balance sheet, JPMorgan maintained a Tier I capital ratio of 11.7% and Basel Tier 1 reserves of $145 billion.
Shares rose 1.4% in early trading, adding to a 20% rise so far this year.

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Fri, 11 Oct 2013 09:45:00 -0400 https://www.proactiveinvestors.com/companies/news/97864/jpmorgans-legal-bills-sink-firm-into-q3-loss-48865.html
<![CDATA[News - JPMorgan, Wells Fargo climb on eve of Q3 results ]]> https://www.proactiveinvestors.com/companies/news/97853/jpmorgan-wells-fargo-climb-on-eve-of-q3-results-48830.html JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co. (NYSE:WFC) gained in today's trades as the lenders are geared to kick off the U.S. bank earnings season before markets open tomorrow morning.

JPMorgan, the largest U.S. bank by assets, is expected to post weak results, while Wells Fargo, the fourth-biggest U.S. bank by assets, might report strong earnings but feeble revenue.

JPMorgan shares advanced 2.4 percent to 51.98 at 2:16 p.m. in New York, halting a three-day decline. Wells Fargo shares gained 2.1 percent to $41.20. 

JPMorgan's quarterly earnings-per-share is expected to drop 7 percent to $1.31, compared with the $1.40 a share it earned a year earlier. The New York-based lender's revenue might slide 3 percent to $23.65 billion.

U.S. banks are expected to post a 1 percent drop in earnings and 2 percent decline in revenue in the third quarter, Stonecap Securitas said in a note to clients yesterday.

Wells Fargo is projected to report an 11 percent increase in profit to 97 cents a share, compared to 88 cents a share it earned a year earlier. But its revenue might drop 1 percent to $20.96 billion.  

The San Francisco, California-based bank, which is also the country's largest home lender, provided guidance in early September that mortgage originations would decline approximately 30 percent the third quarter compared with the previous quarter. Data from the Mortgage Bankers’ Association supported these actions by showing mortgage refinancing volume declined 50 percent in the third quarter relative to the end of 2012.

JPMorgan shares rallied 13 percent this year before today, and Wells Fargo shares jumped 15 percent, each underperforming the S&P 500 Financials Index (INDEXSP:SP500-40) which gained 20 percent.

The financial conglomerates and major banks industries are expected to show double-digit net income growth rates for the third quarter, while earnings are expected to decline in the savings and regional banks industries year-over-year, FactSet said in a note emailed to clients today.

Citigroup Inc. (NYSE:C), the third-largest U.S. bank by assets, will report its third-quarter results on Tuesday, to be followed by Bank of America Corp. (NYSE:BAC), the second-biggest U.S. lender, Goldman Sachs Group Inc. (NYSE:GS), the fifth-largest U.S. bank by assets, and Bank of New York Mellon Corp. (NYSE:BK), the world’s largest custody bank, on Wednesday. 

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Thu, 10 Oct 2013 14:43:00 -0400 https://www.proactiveinvestors.com/companies/news/97853/jpmorgan-wells-fargo-climb-on-eve-of-q3-results-48830.html
<![CDATA[News - JPMorgan CEO Dimon steps down as chair of consumer unit ]]> https://www.proactiveinvestors.com/companies/news/97759/jpmorgan-ceo-dimon-steps-down-as-chair-of-consumer-unit-48687.html JPMorgan Chase & Co. (NYSE:JPM) chairman and chief executive Jamie Dimon has relinquished his duties as chair of the bank's consumer unit in accordance with a new internal policy on multiple roles.

Taking over for Dimon is William Weldon, who is also a director of the holding company. Dimon has been on the hot seat since the "London Whale" scandal, which lead to billions of dollars in losses as result of botched derivative trades.

Dimon is now chairman emeritus of the subsidiary, meaning he would be responsible for the public role of the living will, a regulatory filing which describes how the bank would be dismantled in the event of financial distress.

According to new internal rules at JPMorgan, the chairman of the company cannot chair any subsidiaries. The policy comes at a time when JPMorgan attempts to settle allegations on several fronts, including improper hiring practices in China and misleading sales tactics of mortgage securities.

Seperately, Evercore analyst Andrew Marquardt trimmed his third quarter earnings estimate to $1.40 from $1.42 a share, versus the mean estimate of $1.27 a share. Marquardt also revised his full-year estimate lower to $5.84 from $5.88 a share, compared to the Street's average prediction of $5.78 a share. He left his prediction for 2014 and 2015 unchanged at $5.75 a share and $6.12 a share, respectively. He rates the stock as a "buy" with a $61 price target, a 17% premium on Thursday's close.

Shares today rose 0.9% or 47 cents to $52.39. The stock has increased 19% so far this year.

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Fri, 04 Oct 2013 11:30:00 -0400 https://www.proactiveinvestors.com/companies/news/97759/jpmorgan-ceo-dimon-steps-down-as-chair-of-consumer-unit-48687.html
<![CDATA[News - JPMorgan agrees to $920 mln in fines to settle London Whale scandal ]]> https://www.proactiveinvestors.com/companies/news/97476/jpmorgan-agrees-to-920-mln-in-fines-to-settle-london-whale-scandal-48248.html JPMorgan Chase & Co. (NYSE:JPM) said it has agreed to pay about $920 million in fines to resolve multiple investigations relating to the huge trading blunder in the firm's London chief investment office that took place in August of last year. 

The settlements, with the Securities and Exchange Commission, the U.K. Financial Conduct Authority, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency, also come with an admission that the bank violated securities laws. 

It will pay $300 million to the Office of the Comptroller of the Currency, and $200 million each to the Securities and Exchange Commission and the Federal Reserve, as well as $220 million to the U.K. Financial Conduct Authority.

JPMorgan said the settlements for the London Whale scandal are a major step in the firm's "ongoing efforts to put these issues behind it", and is still cooperating with ongoing inquiries, including the prosecutions of the two former CIO employees. 

A formal indictment of two JPMorgan staffers, Javier Martin-Artajo and Julien Grout, was filed with the U.S. District Court in Manhattan earlier this week, following criminal charges laid against them by the S.E.C. and federal prosecutors last month. The pair were charged with wire fraud, falsifying bank records and contributing to false regulatory filings. 

Prosecutors chose not to charge a third trader, Bruno Iksil, who earned the moniker London Whale for the size of his trades, in exchange for his cooperation in the case against his former colleagues. 

"We have accepted responsibility and acknowledged our mistakes from the start, and we have learned from them and worked to fix them," said chairman and CEO Jamie Dimon in the statement accompanying the announcement, released Thursday. 

"We will continue to strive towards being considered the best bank - across all measures - not only by our shareholders and customers, but also by our regulators. Since these losses occurred, we have made numerous changes that have made us a stronger, smarter, better company."

The final settlement figure is well beyond the $500 to $600 range penalty that the bank was previously estimated to pay. Though this case is now winding to an end, JPMorgan still faces inquiries from several other federal agencies and two European nations, one of which is tied to an ongoing probe into Bernard Madoff‘s Ponzi scheme, as well as to how the bank handled its customers during the recession.

Last month, the Department of Justice launched an investigation over JPMorgan's sale of mortgage-backed securities to Fannie May and Freddie Mac ahead of the financial crisis.

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Thu, 19 Sep 2013 11:16:00 -0400 https://www.proactiveinvestors.com/companies/news/97476/jpmorgan-agrees-to-920-mln-in-fines-to-settle-london-whale-scandal-48248.html
<![CDATA[News - JPMorgan agrees to $800 mln London Whale settlement ]]> https://www.proactiveinvestors.com/companies/news/97412/jpmorgan-agrees-to-800-mln-london-whale-settlement--48125.html JPMorgan Chase (NYSE:JPM) has agreed to an $800 million settlement related to the London Whale trading scandal that resulted in more than $6 billion in losses, according to several media reports. 

The New York-based lender, embroiled in a series of legal headaches that could trigger billions of dollars in fines tied to its dealings leading up to the financial crisis, reportedly also agreed to admit to its mistakes, which would be a major precedent in a circle of increasingly watchful regulators. 

Any statement made would likely include an admission that the bank could have addressed the problem much sooner and that its lenient system of checks and balances allowed the London traders to build risky positions and hide their losses.

A formal indictment of two JPMorgan staffers, Javier Martin-Artajo and Julien Grout, was filed with the U.S. District Court in Manhattan on Monday, following criminal charges laid against them by the S.E.C. and federal prosecutors last month. The pair were charged with wire fraud, falsifying bank records and contributing to false regulatory filings.

Prosecutors chose not to charge a third trader, Bruno Iksil, who earned the moniker London Whale for the size of his trades, in exchange for his cooperation in the case against his former colleagues. 

The latest settlement figure is even greater than the $500 to $600 range penalty that the bank was previously estimated to pay as compensation for alleged manipulation of commodities markets. 

Aside from the SEC, the group of regulators involved in this case includes the Justice Department, Office of the Comptroller of the Currency and the U.K's Financial Conduct Authority. While involved initially, the Commodity Futures Trading Commission has opted out of the settlement, which could open the door to further action against JPMorgan down the road. 

Even as this case appears to wind to an end, JPMorgan still faces inquiries from several other federal agencies and two European nations. 

One is tied to an ongoing probe into Bernard Madoff‘s Ponzi scheme. According to New York Times sources, prosecutors and the F.B.I. are investigating whether JPMorgan failed to alert authorities about any suspicions of Madoff's activities. 

The Comptroller's Office and the Consumer Financial Protection Bureau are also mobilizing to slap the lender with a series of penalties and fines, in response to how JPMorgan handled its customers during the recession. Of the accusations hurled its way, the most costly centres around JPMorgan's alleged practise of luring credit card customers into buying products to protect them from identity theft, but with false promises attached. 

Adding to the list of post-crisis scrutiny is the SEC's examination of JPMorgan’s hiring practices in China. The agency is examining whether the bank hired the children of powerful Chinese officials so it could score lucrative business in the country.

Last month, the Department of Justice launched an investigation over JPMorgan's sale of mortgage-backed securities to Fannie May and Freddie Mac ahead of the financial crisis.

In late July, JPMorgan agreed to a $410 million settlement after one of the bank's energy subsidiaries got into hot water over power plant electricity bids in California and the U.S. Midwest.

Shares of JPMorgan rose 13 cents to $53.27 on Tuesday. 

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Tue, 17 Sep 2013 10:11:00 -0400 https://www.proactiveinvestors.com/companies/news/97412/jpmorgan-agrees-to-800-mln-london-whale-settlement--48125.html
<![CDATA[News - JPMorgan's legal woes pile up, faces $6 bln punishment ]]> https://www.proactiveinvestors.com/companies/news/97063/jpmorgans-legal-woes-pile-up-faces-6-bln-punishment-47492.html JPMorgan Chase (NYSE:JPM) may be on the hook for as much as $6 billion, if a U.S regulator has its way. 

Earlier this month, the U.S. Department of Justice launched an investigation over JPMorgan's sale of mortgage-backed securities to Fannie May and Freddie Mac ahead of the financial crisis, but the bank is balking at what would be the largest ever settlement by any bank. 

The Federal Housing Finance Agency already sued JPMorgan and 17 other banks in 2011 over the quality of nearly $200 billion worth of instruments sold to Fannie and Freddie. Those securities soured so badly that the government stepped in to rescue the two agencies.

Separately, as part of a series of moves that hone in on the JPMorgan's dealings during the latter part of the last decade, the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau, according to a New York Times report, are also mobilizing to slap the lender with a series of penalties and fines.

The action could happen as early as next month, according to unidentified sources close to the issue, in response to how JPMorgan handled its customers during the recession.

Of those accusations, the most costly centres around JP Morgan's alleged practise of luring credit card customers into buying products to protect them from identity theft, but with false promises attached. 

The two authorities would force the bank to acknowledge its mistakes, under the terms of the civil orders. The consumer bureau would levy a $20 million fine, while the comptroller’s office would ask for $60 million.

Adding to the list of post-crisis scrutiny and unabated punishment is a bribery investigation by the Securities and Exchange Commission into JPMorgan’s hiring practices in China. The agency is examining whether the bank hired the children of powerful Chinese officials so it could score lucrative business in the country.

The bank is also getting attention for a trading scandal in London, known as the London whale, that generated more than $6 billion in losses related to alleged manipulation of commodities markets. The penalties in that case could be in the $500 million to $600 million range. The Justice Department, Securities and Exchange Commission, Commodity Futures Trading Commission, Office of the Comptroller of the Currency and the U.K's Financial Conduct Authority are all involved. 

On Tuesday, a former JPMorgan trader was arrested in Spain, weeks after the United States government charged him and another former bank employee with falsifying bank records and inflating the value of derivative trades to hid losses. 

JPMorgan is rising 0.4 percent to $50.77 in mid-morning trading. 

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Wed, 28 Aug 2013 11:13:00 -0400 https://www.proactiveinvestors.com/companies/news/97063/jpmorgans-legal-woes-pile-up-faces-6-bln-punishment-47492.html
<![CDATA[News - JPMorgan hits 7-week low on China probe report ]]> https://www.proactiveinvestors.com/companies/news/96923/jpmorgan-hits-7-week-low-on-china-probe-report-47204.html JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. bank by assets, fell to the lowest intraday price in almost seven weeks, after the New York Times reported U.S. regulators are looking into whether the bank hired the children of Chinese officials to help boost its business in China.

The shares slid as low as $52.39, the lowest intraday price since July 3, and were trading $52.69, down 1.2 percent at 10:01 a.m. in New York today. 

According the report, the bank hired the son of a former Chinese banking regulator who is currently chairman of China Everbright Group Ltd., a state-controlled financial company, while its Hong Kong office employed a Chinese railway official’s daughter. 

After each appointment, the bank secured assignments from companies connected to the new hires’ parents, the paper reported, citing a confidential U.S. government document.

The New York Times report said it is common for global companies to hire the children of Chinese politicians, but that it's unusual for a company to hire the children of officials of state-controlled companies.

JPMorgan is also focused to resolve U.S. and U.K investigations after mishandled trades by its chief investment office caused more than $6.2 billion of losses last year.

JPMorgan has rallied 21 percent since the beginning of the year through Aug. 16, leaving the bank with a market value of $197.93 billion. 


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Mon, 19 Aug 2013 10:02:00 -0400 https://www.proactiveinvestors.com/companies/news/96923/jpmorgan-hits-7-week-low-on-china-probe-report-47204.html
<![CDATA[News - JPMorgan faces probe over mortgage bonds ]]> https://www.proactiveinvestors.com/companies/news/96768/jpmorgan-faces-probe-over-mortgage-bonds-46965.html JPMorgan Chase & Co. (NYSE:JPM) is the subject of a U.S. Department of Justice investigation over the sale of mortgage-backed securities ahead of the financial crisis. 

Securitized mortgage loans are largely blamed for leading to the collapse of the financial sector after the real estate bubble burst, pushing some institutions into bankruptcy and leading to a collossal plunge in the stock market.

The civil division of the U.S. Attorney's office for the Eastern District of California told JP Morgan in May that, based on preliminary findings, the bank had breached securities law.

The probe is part a broad crackdown on financial fraud by a government task force. Banks have also faced intense scrutiny for other housing sector issues, including claims that they baited prospective homeowners with subprime loans.

The news comes after the Department of Justice announced on Tuesday it had sued Bank of America (NYSE:BAC) for misleading investors on the risks of investing in mortgage bonds.

The Justice Department accused Bank of America of neglecting its due diligence and lying to cover up the true nature of the investments. The U.S. Securities and Exchange Commission also got involved, filing a civil suit against the bank. 

Shares of Bank of America gained 0.5 per cent mid-afternoon on Thursday. 

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Thu, 08 Aug 2013 14:50:00 -0400 https://www.proactiveinvestors.com/companies/news/96768/jpmorgan-faces-probe-over-mortgage-bonds-46965.html
<![CDATA[News - JP Morgan agrees to $410 mln settlement with U.S. energy regulator ]]> https://www.proactiveinvestors.com/companies/news/96583/jp-morgan-agrees-to-410-mln-settlement-with-us-energy-regulator-46636.html JPMorgan Chase & Co. (NYSE:JPM) has agreed to a $410 million settlement after one of the bank's energy subsidiaries got into hot water over power plant electricity bids. 

Traders at J.P. Morgan Ventures Energy Corporation allegedly manipulated markets between September 2010 and November 2012 in California and the U.S. Midwest. Hoewever, the company did not admit to any breach of conduct as part of the U.S. Federal Energy Regulatory Commission settlement.

Under the agreement, JPMorgan will pay a $285 million civil penalty to the U.S. Treasury and give back $125 million in unjust profits to ratepayers.

Both the Californian and the midwestern electricity grid operators notified FERC on several occasions about JPMorgan's practices. FERC investigators accused JPMorgan traders of creating "artificial conditions” to force the grid operators to pay premiums on power plants that were usually out of the money in the marketplace.

The news comes as JPMorgan tries to unload its physical commodities business, although it will still trade derivatives and precious metals. 

JPMorgan shares shed 24 cents to $55.45 early Tuesday afternoon.

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Tue, 30 Jul 2013 13:22:00 -0400 https://www.proactiveinvestors.com/companies/news/96583/jp-morgan-agrees-to-410-mln-settlement-with-us-energy-regulator-46636.html
<![CDATA[News - JPMorgan advances after Q2 net surges 31% ]]> https://www.proactiveinvestors.com/companies/news/96195/jpmorgan-advances-after-q2-net-surges-31-46009.html JPMorgan Chase & Co. (NYSE:JPM), the largest U.S. bank by assets, advanced in premarket trading after posting a 31 percent gain in second-quarter profit, beating analysts’ estimates, as revenue from trading stocks and bonds climbed and provisions for bad loans dropped.

The shares rose 0.8 percent to $55.60 at 8:31 a.m. in New York on Friday, headed to extend this year's gain of 25.4 percent.

Net income in the three months ended June 30 increased to $6.5 billion, or $1.60 a share, from $4.96 billion, or $1.21 a share, a year earlier, the New York-based company said in a statement on Friday.

The average estimate of 29 analysts surveyed by Thomson/Reuters was for adjusted earnings of $1.44 a share.

Quarterly revenue grew 13 percent to $26 billion, above the 24.8 billion forecast by 21 analysts on average.

Trading revenue grew 18 percent to $5.4 billion in the April-to-June period, reflecting better performance in credit and equities products, the lender said. 

JPMorgan earned all-time profits in each of the past three years as the Federal Reserve’s stimulus boosted the economy and the banking industry’s results. Worries that the Fed will begin shaving bond purchases used to stimulate growth bolstered long-term interest rates during the second quarter and might have damped earnings growth at some banks. JPMorgan shares have strengthened 41 percent over the past three years.

The bank said it cut the allowance for loan losses in consumer and community banking in the second quarter by of $1.5 billion.

Credit card sales increased 10 percent to a lifetime high of $105.2 billion.

Mortgage banking income, which comes from making home loans and servicing existing mortgages, slid 14 percent to $1.1 billion as a refinancing wave faded and interest rates increased.

The corporate and private equity division lost $522 million in the latest quarter.

Consumer deposits rose 10 percent at the end of the period, compared with a year earlier.

Loan balances rose to a record $86 billion, but the bank quoted its chief executive officer, Jamie Dimon, as saying "loan growth across the industry continued to be soft, reflecting a cautious stance by consumers, many small businesses and corporations."

"However, we continue to see broad-based signs that the U.S. economy is improving and we are hopeful that, as jobs are added and confidence builds, the U.S. economy will strengthen over time.”

JPMorgan was the first U.S. bank to report second-quarter earnings. It was followed by Wells Fargo & Co. (NYSE:WFC), the country’s biggest mortgage originator, which posted a higher-than-expected 20 percent rise in quarterly profit on Friday as it set aside less money to cover bad loans. Citigroup Inc. (NYSE:C) and Goldman Sachs Group Inc. (NYSE:GS) will release their quarterly earnings reports on Monday.

JPMorgan was also the second Dow member to report quarterly earnings this season. On Monday, Alcoa Inc. (NYSE:AA), the biggest U.S. aluminum producer, reported better-than-expected adjusted earnings per share.

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Fri, 12 Jul 2013 09:21:00 -0400 https://www.proactiveinvestors.com/companies/news/96195/jpmorgan-advances-after-q2-net-surges-31-46009.html
<![CDATA[News - JPMorgan, Wells Fargo expected to report higher Q2 net Friday morning ]]> https://www.proactiveinvestors.com/companies/news/96182/jpmorgan-wells-fargo-expected-to-report-higher-q2-net-friday-morning-45979.html Two financial heavyweights, JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co. (NYSE:WFC), are expected to post rising profits before markets open on Friday as they unofficially launch the financial sector's earnings season.

JPMorgan, the largest U.S. bank by assets and a Dow member, is expected to report adjusted earnings per share of $1.44 in the second quarter, up from the $1.21 a share it earned in the year-earlier period.  

The New York-based company is expected to report revenue of $24.96 billion, up from the $22.18 billion it generated a year earlier. 

JPMorgan shares were swinging on Thursday. They were little changed at $54.86 at 2 p.m., giving the company a market value of $207.8 billion.

JPMorgan has climbed 25 percent this year, compared with an 18 percent gain for the Dow Jones Industrial Average Index (INDEXDJX:.DJI). 

Meanwhile, Wells Fargo, the country’s biggest mortgage originator, is projected by 32 analysts on average to post net income, excluding one-time items, of 93 cents a share, up from the 82 cents a share it earned a year earlier. 

The company is projected by 24 analysts on average to report $21.21 billion in revenue, slightly below the $21.29 billion it generated in the same period a year ago. 

Wells Fargo shares dropped 0.2 percent to $42 at 2 p.m. in New York, giving the company a market value of $222.7 billion. The stock has rallied 23 percent so far this year, outperforming the S&P 500 (INDEXSP:.INX), which has picked up 17 percent.

A number of analysts have lowered Wells’ stock in recent weeks. Susquehanna downgraded its rating on the bank to "neutral" from "positive" on July 9. The firm noted that the company’s stock had rallied about 25 percent since March, and forecast that its mortgage revenue would decline during the rest of the year. Sterne Agee also dropped its rating on Wells to "neutral" from "buy". 

The current consensus among analysts is to "buy" both stocks.

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Thu, 11 Jul 2013 14:35:00 -0400 https://www.proactiveinvestors.com/companies/news/96182/jpmorgan-wells-fargo-expected-to-report-higher-q2-net-friday-morning-45979.html
<![CDATA[News - JPMorgan reports record quarterly profit; shares fall as revenues disappoint ]]> https://www.proactiveinvestors.com/companies/news/94257/jpmorgan-reports-record-quarterly-profit-shares-fall-as-revenues-disappoint-42686.html  

JPMorgan Chase & Co. (NYSE:JPM),  the largest U.S. bank by assets, said first-quarter profit climbed 33 percent to a history high, topping analysts' forecast as the bank lowered provisions for bad loans.

Net income for the first quarter rose to $6.53 billion, or $1.59 a share, from $4.92 billion, or $1.19, in the year-earlier period, the New York-based company said in a statement on Friday. The average estimate of 30 analysts was for a profit of $1.40.

“We are seeing positive signs that the economy is healthy and getting stronger," CEO Jamie Dimon was quoted in the statement. "We are also doing our part to support the economic recovery, providing credit and raising capital totaling $480 billion for our clients in the first quarter."

The company ascribed the increase in earnings to lower non-interest expense and lower provision for credit losses. The provision for credit losses dropped 15 percent to $617 million. Non-interest expense fell 16 percent to $15.4 billion.

"We reduced the allowance for loan losses in consumer and community banking in the first quarter by a total of $1.2 billion and are likely to see further releases," Dimon said. "Credit conditions were also favorable across the wholesale loan portfolios.” 

The bank's corporate and private equity unit, which housed the group that posted the trading losses, earned $250 million in the first quarter, compared with a $1.02 billion loss in the year-earlier period.

JPMorgan also said it will hike its second-quarter dividend to 38 cents a share, from 30 cents

Net revenue in the quarter, however, fell 3 percent to $25.8 billion, hurt by declining interest income, trailing the average expectation of 22 analysts which was for $25.97 billion in revenue.

Net interest income decreased 6 percent to $11.1 billion, which JPMorgan ascribed to low interest rates, competitive pressure and lower investment securities yield.

Income in mortgage banking declined in the first quarter to $673 million, from $980 million last year, according to the statement.

Shares of the JPMorgan fell 0.9 percent to $48.88, set to end a six-day winning streak, in premarket trading in New York on Friday.

 

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Fri, 12 Apr 2013 09:21:00 -0400 https://www.proactiveinvestors.com/companies/news/94257/jpmorgan-reports-record-quarterly-profit-shares-fall-as-revenues-disappoint-42686.html
<![CDATA[News - J.P. Morgan upgraded to "overweight" at Evercore ]]> https://www.proactiveinvestors.com/companies/news/94086/jp-morgan-upgraded-to-overweight-at-evercore-42386.html  

J.P. Morgan Chase & Co. (NYSE:JPM), the biggest U.S. bank, was raised to "overweight" from "equal weight" at Evercore Partners on Friday.

Analysts said the firm has healthy fundamentals, despite the London Whale losses.

The firm's capital markets area continues to improve and it has the cheapest valuation of the large-cap banks, they said.

Evercore raised the firm's price target to $55 a share from $48 a share and forecast this year's earnings per share to be $5.50.  The average estimate of 35 analysts is for a profit of $5.48 per share.

Evercore analysts also forecast first-quarter earnings per share of $1.43 when New York-based J.P. Morgan reports next Friday. The consensus of 30 analysts is for a profit of $1.38 per share.

J.P. Morgan shares fell as much 1.6 percent to $46.75 at 10:09 a.m. in New York on Friday, as financials fell on account of the gloomy March jobs data released this morning. The company, with a market value of $180.6 billion, gained approximately 7 percent this year through Thursday.

The current consensus among 36 analysts is to "buy" the stock. The rating has not been changed since last month.

 

 

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Fri, 05 Apr 2013 10:32:00 -0400 https://www.proactiveinvestors.com/companies/news/94086/jp-morgan-upgraded-to-overweight-at-evercore-42386.html
<![CDATA[News - JPMorgan to cut up to 4,000 jobs - REPORT ]]> https://www.proactiveinvestors.com/companies/news/93280/jpmorgan-to-cut-up-to-4000-jobs-report-41018.html  

JPMorgan Chase & Co. (NYSE:JPM) saw its shares slide Tuesday after reports surfaced that it is planning to slash about 1.5 per cent of its workforce to help it improve profitability.

According to a Reuters report, the company plans to cut 3,000 to 4,000 jobs in its consumer bank this year, as it attempts to improve the profitability of its branches.

Citing spokesperson Kristin Lemkau, the news outlet reported that the cuts will come mainly through attrition. The bank's branches have 63,500 employees, representing about a quarter of JPMorgan's total employees.

The company is reportedly trying to restructure by scaling back on tellers that handle routine transactions and to add salespeople for products and services like wealth management that can lift revenue.

In a presentation to investors, JPMorgan said that it will reduce staff per branch by 20 per cent through 2015. Within its mortgage business, it reiterated its plans to drop 13,000 to 15,000 jobs by 2014.

Reuters reported that JPMorgan Chase plans to increase its network by roughly 100 branches per year. The company had 5,614 branches at the end of 2012, second to Wells Fargo & Co's (NYSE:WFC) in size.

Last month, the bank reported better-than-expected earnings, and reported a 10 per cent increase in revenue to $23.65 billion.

Shares of the firm slipped 1.38 per cent as at about 11:40 a.m. EDT, trading at $47.04.

 

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Tue, 26 Feb 2013 11:38:00 -0500 https://www.proactiveinvestors.com/companies/news/93280/jpmorgan-to-cut-up-to-4000-jobs-report-41018.html
<![CDATA[News - JPMorgan Q4 earnings beat estimates ]]> https://www.proactiveinvestors.com/companies/news/92431/jpmorgan-q4-earnings-beat-estimates-39487.html  

JPMorgan Chase & Co. (NYSE:JPM) joined other heavyweight Wall Street banks in reporting earnings Wednesday, posting better-than-expected fourth quarter profit, but shares in the firm edged lower.

Its stock fell 0.69 per cent to $46.03 as at about 10:15 a.m. EDT.

For the fourth quarter, JPMorgan reported net income of $5.7 billion or $1.39 per share, compared with net income of $3.7 billion, or 90 cents per share in the year-ago period.

The latest period included a net per-share gain of four cents tied to the foreclosure settlement, debit valuation adjustments and other items. The year-ago period included net charges of six cents a share related to debit valuation adjustments, litigation reserves and benefits from reduced loan loss reserves.

J.P. Morgan was part of a group of 10 banks that last week said they would pay $8.5 billion to end a regulatory process set up in 2011 over banks' foreclosure practices.

Total net revenue increased by 10% to $23.65 billion. On a managed basis, revenue, which excludes the impact of credit-card securitizations and is on a tax-equivalent basis, rose 10% to $24.38 billion. 

Analysts polled by Thomson Reuters expected a per share profit of $1.16 on revenue of $24.42 billion.

“For the third consecutive year, the firm reported both record net income and a return on tangible common equity of 15 per cent,” said chairman and CEO Jamie Dimon.

“The firm’s results reflected strong underlying performance across virtually all our businesses for the fourth quarter and the full year, with strong lending and deposit growth.” 

Dimon said that as a result of improvement in the company’s real estate portfolios as the housing market and economy continued to recover, JPMorgan reduced the related allowance for credit losses by $700 million in the fourth quarter.

“And we are likely to continue to see reductions in the allowance as the environment improves.”

During the quarter, business loans grew seven per cent from a year earlier to $18.9 billion. 

In mortgage banking, revenue came in at $3.3 billion, up 57 per cent as net interest income fell to $1.2 billion. Non-interest revenue more than doubled to $2.1 billion, driven by higher mortgage fees and related income.

Noninterest expense was $8.0 billion, an increase of $1.2 billion from the prior year, driven by costs related to mortgage-related matters, including the impact of the Independent Foreclosure Review settlement and the write-off of intangible assets associated with a non-strategic relationship in credit card, the company said.

Overall, the bank's credit loss provision funds set aside to handle future loan losses totaled $1.1 billion, lower than the $1.8 billion a year earlier.

The investment banking division posted revenues of $7.6 billion, up 21 per cent year-over-year, while commercial banking services reported revenues of $1.7 billion, up 3 per cent from last year.

Mortgage-loan originations were $51.2 billion, up 33 per cent from the prior year.

JPMorgan also announced Wednesday that its management task force and the independent review committee of its board have each concluded their reviews relating to the 2012 losses by the firm’s Chief Investment Office of roughly $5.8 billion, and have released their respective reports.

Both reports are available in a Form 8-K, filed with the SEC today.

The bank estimated its common-equity ratio for purposes of the Basel III standards was 8.7 per cent at the end of the fourth quarter compared with 8.4% at the end of the second quarter. 

 

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Wed, 16 Jan 2013 10:19:00 -0500 https://www.proactiveinvestors.com/companies/news/92431/jpmorgan-q4-earnings-beat-estimates-39487.html