Join        Login             Stock Quote

JPMorgan Chase (JPM) 4Q Earnings Jump On Strong Lending, Deposit Growth

 January 16, 2013 07:19 AM

(By Balachander) JPMorgan Chase & Co. (NYSE: JPM), the banking giant, posted a jump in quarterly earnings, reflecting strong lending and deposit growth.

Earnings per share jumped 54 percent to $1.39 from $0.90 and net income too rose 54 percent to $5.7 billion in the fourth quarter. Quarterly earnings included items: benefits totaling 27 cents, pretax loss of 9 cents and 14 cents related to pretax expense.

On a sequential basis, earnings were flat.

Net revenue on a managed basis was $24.38 billion, up 10 percent from the same period last year and down 6 percent from the prior quarter.

[Related -Bank Stocks: The Misbegottenness of the Volcker Rule Truly Knows No Bounds]

"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," commented JPM CEO Jamie Dimon.

Wall Street analysts, on average, expected EPS of $1.16 on revenue growth of 10 percent to $24.42 billion.

Banking revenue jumped 33 percent from the fourth quarter of last year.

The provision for credit losses dropped 70 percent and 63 percent from the fourth quarter of 2011 and previous quarter, respectively.

Mortgage Banking originations increased 33 percent and Credit Card sales volume rose 9 percent compared with the prior-year quarter. Commercial Banking grew loan balances for the tenth straight quarter, rising 14 percent.

[Related -Gold hasn’t lost its allure in my portfolio]

The New York-based banking giant estimates that its Basel III Tier 1 common ratio was 8.4 percent at the end of the quarter ended September, up from 7.9 percent in the previous quarter.

Basel I Tier 1 Common ratio was 11 percent at the end of fourth quarter, compared with 10.4 percent at in the third quarter.

The bank estimates that Basel III Tier 1 common ratio was roughly 8.7 percent at the end of the fourth quarter, up from 8.4 percent in the prior quarter.

For the third quarter, J.P. Morgan's net income rose 33 percent and net revenue 6 percent. The provision for credit losses dropped 26 percent.

Wells Fargo & Co. (NYSE: WFC) had last week reported an increase in quarterly earnings and revenue, while posting lower net interest margin.

JPM shares, which has been trading between $30.83 and $46.49 over the past year, closed Tuesday's regular trading at $46.35.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageThe Eurozone: On The Road To Recovery With A Lingering Risk

Back in September the idea that the Eurozone's economy could potentially undergo a recovery (see post) was read on...

article imageAversion to the Mean

Stocks’ gangbusters February doesn’t mean March must be a read on...

article imageNasdaq Back To 2000 Peak But What About Investors' Portfolios?

I hope Wall Street and CNBC don’t insult the intelligence of investors who were fully invested at the read on...

article imageStocks Break Out Again But May Be Running On Fumes

Despite low trading volume, a strong dollar, mixed economic and earnings reports, paralyzing weather read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.