Posts Tagged JP Morgan Chase & Co.
Volcker Rule
Posted by Belisarius in Markets on January 22, 2010
After sleeping it off and giving a little tough on Barack Obama’s proposal of new financial regulation I still think this is HUGE. Because it is so HUGE, I have some doubts how the final version would look like. Similar as with health care reform, a strong opposition backed by almost unlimited (lobbying) funds will arise.
If it turned to a law it will cripple “Bank Holding Company” earnings. Goldman Sachs, Morgan Stanley, Bank of America, JP Morgan Chase and Co. could be especially hit losing maybe even a half of the earnings. Off course, their proprietary trading desks are worth a lot and they could be spun off, but they would lose both financing and information advantages.
When I Was Away – Part 2
Posted by Belisarius in Markets on January 18, 2010
- Intel (INTC): Q4 EPS of $0.40 vs. consensus of $0.10. Revenue of $10.6B (+28%) vs. $10.2B. Gross margin of 65%.
Source: Stock Charts.com
- JPMorgan (JPM): Q4 EPS of $0.74 vs. consensus of $0.87. Revenue of $23.16B vs. $26.8B. Adds $1.9B to consumer loan loss reserves, resulting in firm wide credit reserves of $32.5B and loan loss coverage ratio of 5.5% vs. 4.3% peer average. Charge-off rate down to 8.64% vs. 9.41% in 3Q09.
Source: StockCharts.com
In short Intel blew out , JP Morgan & Chase (the best managed (full service) bank) better than expected and surprise, surprise stocks fell?
JP Morgan Chase & Co Earnings
Posted by Belisarius in Markets on October 14, 2009
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
Source: JPM
Chart 2. JPM Home Equity Delinquency Trend
Source: JPM
Week Of Earnings Announcements
Posted by Belisarius in Markets on October 12, 2009
This week could definitively determine the route U.S. equities are going to take. Tuesday: Procter & Gamble and Intel; Wednesday: JP Morgan, Thursday: Goldman Sachs and Citigroup; Friday: Bank of America and General Electric. I suspect banks will report something similar to previous quarter; but the market impact would not be so profound. I still believe that the banking crisis will have round two, but not at this moment, probably in few quarters. Interesting Bloomberg article today on bank earnings composition. Bloomberg story: Writedowns on Mortgage Servicing Make Even JPMorgan Vulnerable . We will see when the reality catches up with accounting.
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