Market Overview

UPDATE: JPMorgan Posts Lower Q4 Profit

Related JPM
This Day In Market History: Bear Stearns Merges With JPMorgan
The First Ever Benzinga Women's Wealth Forum Is Less Than One Week Away
Even Without The Law, Fiduciary Rule Awareness Remains (Seeking Alpha)

Shares of JPMorgan Chase & Co. (NYSE: JPM) dropped more than 2% in pre-market trading after the company reported results for the fourth quarter.

The New York-based company posted quarterly net income of $4.9 billion, down from $5.3 billion, in the year-ago period. Earnings per share slipped to $1.19 from $1.30. The latest quarter earnings figure included $990 million in legal charge.

Its revenue declined 2% to $23.6 billion. However, analysts were expecting earnings of $1.31 per share on revenue of $23.64 billion.

Consumer & Business Banking net revenue rose 3% y/y to $4.6 billion, while Mortgage Banking net revenue slipped $405 million to $1.9 billion. Real Estate Portfolios net revenue dropped $171 million to $714 million, while Card, Merchant Services & Auto net revenue fell 4% to $4.5 billion.

Commercial Banking net revenue declined 6% to $1.8 billion in the latest quarter, while Asset Management net revenue came in flat at $3.2 billion.

Net interest income rose 2% to $11.3 billion, while average total deposits surged 8% to $497.7 billion.

JPMorgan's return on tangible common equity shrank to 11% from 14%. Core loans rose 8% y/y.

During the quarter, JPMorgan returned around $3 billion of capital to shareholders.

Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial results: “Our businesses continue to demonstrate strong momentum and expense discipline. Consumer & Community Banking delivered impressive growth in deposits and investment assets in the fourth quarter and throughout 2014, while outperforming its expense reduction target for the year. Mortgage originations improved sequentially in the fourth quarter, despite a seasonally slow quarter. Our Card business delivered double-digit sales volume growth, outpacing the industry for the 27th consecutive quarter. Auto had a good quarter and the pipeline remains strong.”

JPMorgan shares fell 2.26% to $57.51 in pre-market trading.

Posted-In: profitEarnings News


Related Articles (JPM)

View Comments and Join the Discussion!