[基础分析] JPMorgan 3Q Profit Soars On Broad-Based Strength; Shares Up

何鸿燊

Last update: 10/14/2009 7:32:13 AM

   DOW JONES NEWSWIRES
JPMorgan Chase & Co. (JPM) third-quarter earnings soared, walloping analysts' expectations, as the banking giant was carried again by strong investment-banking results. They more than offset continued increases in credit costs, which Chairman and Chief Executive Jamie Dimon said will remain elevated "for the foreseeable future" in its consumer and credit-card operations. Shares rose 4% premarket to $47.47.

Through Tuesday, the stock was up 45% so far this year. JPMorgan, the first of the major banks to report results, said it saw broad earnings growth across commercial and retail banking as well during the quarter. Overall, banks are expected to post falling earnings in the most-recent period.

JPMorgan posted a profit of $3.59 billion, or 82 cents a share, from $527 million, or 9 cents a share, a year earlier. The previous year's results included more than $4 billion in write-downs and losses from taking over Washington Mutual Inc.

Revenue increased 81% to $26.62 billion. A survey of analysts by Thomson Reuters predicted a profit of 52 cents a share on $24.96 billion in revenue. Tier 1 capital ratio, a key measure of financial strength, was 10.2%, up from 8.9% a year earlier and 9.7% in the prior quarter.

In investment banking, revenue rose 85% while the segment's profit more than doubled. Managed credit-loss provisions were $9.8 billion, up $3.1 billion from a year earlier and up $100 million from the previous quarter.

The net charge-off rate in JPMorgan's consumer business surged to 6.29% from 3.39%.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com (END) Dow Jones NewswiresOctober 14, 2009 07:32 ET (11:32 GMT)

何鸿燊

JPMorgan Chase & Co. (JPM) third-quarter earnings soared as strong investment-banking results outweighed another sizable provision for loan losses.

    The $2 billion the bank set aside to cover current and future losses from consumer loans reflects the bank's tradition of protecting its balance sheet even as many bankers see a slowdown in the rate delinquencies are increasing. Chairman and Chief Executive Jamie Dimon said the cost of covering delinquencies and loan losses will remain elevated "for the foreseeable future" in its consumer and credit-card operations.

    So despite the strong profit, the quarter does not reflect a turnaround yet, but rather stabilization. It is the first time since JPMorgan Chase bought the collapsing Washington Mutual Inc. in September last year that assets and deposits did not shrink. Loan balances continued to shrink as the recession took its toll, but lending became more profitable.

    Dimon also said the quarter's strong results reflect "broad-based growth" in several lines of businesses. Revenue in all but one of JPMorgan Chase's six lines of businesses improved from the second quarter, though net income was mixed because the bank set aside more money to cover delinquent loans.