Seeking Alpha

JPMorgan earnings call: Staying disciplined on credit

  • "It feels good to have a quarter with such a small number and have put such large issues behind us," says JPMorgan (JPM) CFO Marianne Lake on the earnings call, talking about the bank's legal expenses. Quickly added: "I want to remind you that we still expect legal expenses to be lumpy quarter over quarter for the next couple of years as we work through remaining issues.”
  • Presentation slides
  • On the currently "challenging" banking environment, Lake notes the bank's pipeline is at its strongest level since 2012 and utilization rates have stabilized. "We are cautiously optimistic that improved lending trends will continue in 2014."
  • Noting lame growth in commercial and industrial loans, ISI's Glenn Schorr wants to know why, given far stronger action across the industry. Lake: We're very disciplined on credit, so we're not chasing growth "at the cost of liberal credit structures or overly aggressive pricing and also the fact that we continue to see some of our loans refinanced away from us."
  • The bank's weak quarter was inline with Nomura's Steve Chubak's estimates, and he says consensus remains too high for 2014 overall. Look for cuts and downgrades from the rest of the Street.
  • Shares -3.6% premarket
  • Previous earnings coverage

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Comments (4)
  • cbmetcalfe
    , contributor
    Comments (86) | Send Message
     
    It seems like people forgot about yesterday's drop. This one will bounce. It's too good to keep low. Buy while you can! Another good long play for now is DFS and for the riskier investor, DB. The financials are down but that means BUY BUY BUY!
    11 Apr 2014, 09:31 AM Reply Like
  • june1234
    , contributor
    Comments (3121) | Send Message
     
    Despite huge buybacks and lowered expectations JPM disciplined itself to an 18.5% drop in earnings in this recovery. If they don't get that 3 to 4% GDP growth they looking for going forward LOB. Chart looks ugly on financials.
    11 Apr 2014, 10:26 AM Reply Like
  • deercreekvols
    , contributor
    Comments (6660) | Send Message
     
    Not sure there is much to "feel good" about, but that what you get when you drink the Jamie Dimon punch, so it seems.

     

    No mention of on-going investigations and/or fines? $30B + and counting....
    11 Apr 2014, 07:10 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (5267) | Send Message
     
    If you are interested in (JPM) warrants, here is one way to get exposure: http://bit.ly/1gSvpcA
    11 Apr 2014, 07:11 PM Reply Like
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