JP Morgan Chase & Co Earnings

October 14th, 2009 by Belisarius

EPS of $0.82 vs. $0.51 consensus. Main contribution came from fixed income revenues; half of the net income coming from investment banking; retail services & credit card divisions suffering. Earnings presentation.

Solid performance; excellent capital ratios.

From the outlook section: “If economy weakens further, additional reserving actions may be required.” Normalization  of investment banking revenues expected (decrease); Large write offs on the credit card, mortgage and home equity loans.

Some nice delinquency graphs:

Chart 1. JPM Credit Card Delinquency Trend

JPM Credit Card Delinquenciy Trends 14102009

Source: JPM

Chart 2. JPM Home Equity Delinquency Trend

Source: JPM

Source: JPM

Chart 3. JPM Prime Mortgage Delinquency Trend

Source: JPM

Source: JPM

Chart 4. JPM Subprime Card Delinquency Trend

JPM Subprime Delinquenciy Trends 14102009

It’s not slowing. I will not bring down JPM, bur some weaker banks could be hit.

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