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JPMorgan Chase Embraces Shareholder Friendly Corporate Culture
- Last Friday JPM issued a corporate governance document called "How We Do Business" that outlines 3 changes to compensation policy that are beneficial to shareholders.
- Pay for performance compensation model will reward employees for achievements that are linked with long-term shareholder value and safety and soundness of investment.
- Strong share ownership guidelines and holding requirements for operating executives will ensure management’s focus on creating long-term value.
- A strong clawback policy will hold operating executives accountable for actions that negatively affect business performance in current or future year.
- BofA warned that trading revenues might be down for the fourth quarter and this may spread to other banks such as JPMorgan.
- Banks are telling their clients to take their deposits elsewhere as they are earning next to nothing on their money.
- Highbridge is looking to distance itself from JPMorgan in order to become more competitive as a hedge fund.
- JPM has performed very strongly since recovering from the London Whale incident.
- Considering the headwinds to JPM's business it is incredibly impressive the bank has continued to deliver growth.
- I think JPM is worth $66 right now.
JPMorgan And Goldman Sach's Investment Banking Divisions Are Poised For SuccessLester Goh • Tue, Dec. 16
- Investments banks have been experienced rapid growth within their underwriting and advisory divisions in past years.
- Some have questioned whether this growth is sustainable going forward.
- Looking at key industry drivers, I explain why there is still growth to be realized, and why Goldman and JPMorgan are poised to capitalize on it.
- Low interest rates, high corporate cash balances, corporate confidence, record-high M&A volumes and skyrocketing market valuations will continue to drive the industry further.
Is JPMorgan The Biggest Loser From The Fed's Capital Surcharge Proposal?
- The Fed provided further details regarding their proposal to implement additional capital surcharges for the largest US banks.
- As widely expected, the focus of the proposed surcharge is the perceived reliance of large banks on short-term wholesale funding.
- JPMorgan was singled out in the Fed discussion as the only bank with an estimated capital 'hole' of $22 billion.
- What is so unique about JPMorgan, such that it is the only bank with a capital shortfall?
- The stock appears to be inexpensively valued based on 2015 earnings estimates.
- The dividend is decent and has a lot of room to grow with respect to trailing earnings.
- On a technical basis the stock appears to be exhibiting bullish trends.
ModernGraham Quarterly Valuation Of JPMorgan Chase
- JPM is suitable for both the Defensive Investor and the Enterprising Investor following the ModernGraham approach.
- According to the ModernGraham valuation model, the company is significantly undervalued at the present time.
- The market is implying 2.01% earnings growth over the next 7-10 years, which is significantly less than the rate the company has seen in recent years.
Best S&P 500 Dividend Stocks According To Graham Principles: JPMorgan Chase
- Ranking the top twenty S&P 500 dividend stocks, according to Graham principles.
- Explanation and back-testing of the "All-Stars: Graham" ranking system.
- Description and a buy recommendation for the first-ranked stock of the system: JPMorgan Chase.
JPMorgan Deteriorating: Hold, But Have Finger On The Sell Button
- Earnings quality is not great.
- However, rays of light exist in several divisions and the balance sheet.
- Time will tell if momentum returns, so for now, hold.
Probing Further Into JPMorgan: Strong Results Dampened By Federal Investigation
- JPMorgan is facing a new probe into price-fixing activities in its foreign exchange trading business.
- As a result, JPMorgan upped its potential costs for legal expenses by $1.3 billion and reduced Q3 earnings results.
- Overall, recent results were positive, showing a shift back to profitability.
- We are encouraged by this growth; however, suggest investors also consider peers, such as GS, who are taking to increase transparency and accountability, as well.
- JPM shares have underperformed for the past year, but results are strong, meaning investors can buy a great company at a good price.
- The consumer bank is posting moderate loan growth, the investment bank has top market share, and asset management is growing revenue and expanding margins.
- Shares are now slightly below book value and less than 10x earnings, making now an attractive entry point.
- Throughout 2014 the stock has experienced some really bad news and it is still flat during the past year.
- The dividend has a lot of room to grow with a current payout of just 30%.
- If interest rates begin to rise next year as anticipated, we can see a rise in the share price of the stock.
JPMorgan's Swelling Legal Provisions Did Not Undermine Strong Q3 Performance
- JPMorgan had to spend $1 billion on legal expenses due to forex market rigging investigation but the company still managed to convert its losses over the previous year into profits.
- The company achieved this by playing to its strengths and generating revenue from investment banking, fixed income markets, deposits and credit card sales.
- JPMorgan took pride in its cost cutting measures as it sought to automate to save costs. The company is currently facing competition from tech giant Apple.
- JPMorgan has stood tall over the years and has repaid investors’ faith, does make a worthy investment prospect, if not for the short term then definitely for the long term.
JPMorgan Q3 2014 Earnings: As In-Line As It Can GetWestEnd511 • Wed, Oct. 15
- Headline EPS missed consensus but adj EPS actually came in-line.
- In-line revenue thanks to IB and better than expected loan growth.
- Continue to favor TD and BAC due to lower wholesale exposure and earnings recovery story.
Update: JPMorgan Earnings Miss EPS By $0.03, But Beat Revenues By 2.0%
- JPM missed increased earnings forecasts, but reported progress in core loans, auto origination and investment banking.
- EPS reflects continued improvement and was in-line to slightly positive compared to my forecast.
- Maintain a "Buy" on JPM, especially as 2015 and 2016 earnings forecasts continue to increase.
Whisper Number Impact: What Will JPMorgan's Shares Do Post Earnings?
- The whisper number is $1.37, one cent behind the analysts' estimate.
- JPMorgan has a 74% positive surprise history (having topped the whisper in 37 of the 50 earnings reports for which we have data).
- The overall average post earnings price move is 'opposite' (beat the whisper number and see weakness, miss and see strength) when the company reports earnings.
- JPMorgan Chase is scheduled to report 3Q 2014 earnings before the bell on Tuesday, October 14th.
- Earnings Per Share: The current Street estimate is $1.38 per share (range: $1.30 to $1.50).
- Revenues: The current Street estimate is $23.99 billion, a 0.50% increase from the year-ago period.
JPMorgan Sells Health Savings Account Business To Webster Financial - A Win For BothStock Gazer • Wed, Oct. 1
- WBS and JPM came to an agreement about the purchase and sale of HSA. The deal involves the sale of almost 700,000 accounts to Webster Financial’s HSA Bank division.
- JPMorgan had announced plans of streamlining its business and intended to achieve that goal by selling some of its non-core business units which included the prepaid card business.
- JPMorgan does not expect any adverse effects on its earnings. The company does not anticipate any changes to the revenues and profits it earns because of this deal.
Thu, Dec. 25, 6:33 AM
- JPMorgan's (NYSE:JPM) Asian Infrastructure fund is in advanced talks to partner with Indian carrier SpiceJet's co-founder, Ajay Singh, for a planned $200M investment into the cash-strapped airline.
- JPMorgan and Singh, who have so far invested about 170M rupees in SpiceJet to help it clear dues to oil refiners, plan to finalize the deal in a month’s time.
Wed, Dec. 17, 7:36 AM
- Jefferies yesterday posted a 73% plunge in fixed-income trading revenue for the quarter ended Nov. 30, and a 45% fall in equity-trading revenue. “You’re going to see weaker trading results because of what I’d call bad volatility,” says Charles Peabody, as firms cut back on stock and bond offerings.
- That Q4 trading revenue is going to be a weak one for the likes of JPM, C, BAC, GS, and MS shouldn't be a major surprise as Ciit's Mike Corbat, BofA's Brian Moynihan, and JPM's Marianne Lake said as much when presenting at a financial services conference earlier this month. But the weakness they described is nowhere near what was reported at Jefferies.
- Alongside the weak trading results, Jefferies is also looking to get rid of Bache - its commodities-trading business. "The fact that they are throwing in the towel on this business just a few years in would suggest that maybe that opportunity is not nearly as robust as they thought it would be,” says UBS's Brennan Hawken.
- Previously: Jefferies posts loss, mulling sale of Bache unit (Dec. 16, 2014)
Tue, Dec. 16, 12:14 PM
- Under its $13B 2013 mortgage settlement, JPMorgan (JPM +0.6%) was to provide $4B in consumer aid, and the bank has told the settlement monitor it has completed about $2.25B of that. The monitor, Joseph Smith, says his office needs to validate the calculations before giving JPMorgan credit.
- Thus far, the bank has been credited $862M for aid to more than 46K borrowers. More than 60% of that has gone to new lending, including to those areas hit hardest by the real estate bust, and loans to low-income borrowers. The remaining 40% was for loan forgiveness and forbearance.
Mon, Dec. 15, 4:37 PM| Comment!
Wed, Dec. 10, 11:12 AM
- Speaking at the Goldman Sachs financial services conference, JPMorgan (JPM -1.8%) CFO Marianne Lake sees FICC revenue lower by a "high teens" percentage in Q4.
- 2015 is shaping up to be "respectable," but will bear more resemblance to 2014 than the bank would like, she adds.
- Addressing the latest chatter about boosted capital requirements, Lake says it's "reasonable" to assume capital ratios for the largest banks will go to a total of 11.5% - the 7% common equity requirement necessary for most banks, plus the 4.5% boost for the big lenders.
- At the same conference yesterday:
- Previously: Banks slip as Moynihan warns on trading activity (Dec. 9, 2014)
- Previously: Citigroup taking nearly another $3B in legal charges (Dec. 9, 2014)
Wed, Dec. 10, 3:42 AM
- It has been revealed that JPMorgan (NYSE:JPM) has a $22B capital hole under newly proposed Fed rules, FT reports
- Officials had not intended to release the fact, but rather announced that there was an aggregate shortfall of $21B between eight major banks. However, during an exchange with vice-chairman Stanley Fischer at a recent Fed meeting, it emerged that JPMorgan accounted for the entire deficit.
- The bank will have until 2019 to reach the new buffer.
Tue, Dec. 9, 1:53 PM
Tue, Dec. 9, 11:38 AM
- Even as energy markets are buffeted by unusual volatility, some of Wall Street's biggest banks are ready to write billion-dollar checks to finance Cheniere Energy's (LNG +0.4%) $15.5B Corpus Christi natural gas project on the Gulf coast, CNBC reports.
- The commitments could put banks including JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) on the hook if the market for liquefied natural gas goes south, according to the report.
- The gas terminal, now under development and expected to produce as much as 13.5M tons of liquefied natural gas starting in 2018, is now seeking $11.5B in a seven-year bank credit facility that would depend in part on the issuance of new bonds next year and the year after to repay its debt; private lenders reportedly have provided LNG with an initial $2.5B in funding to construct the terminal.
Tue, Dec. 9, 8:52 AM
- A check of the other major banks premarket amid a global selloff of some note and BofA's Brian Moynihan's warning about sluggish Q4 trading revenue finds JPMorgan (NYSE:JPM) -1.5%, Citigroup (NYSE:C) -1.5%, Wells Fargo (NYSE:WFC) -1.2%, Goldman Sachs (NYSE:GS) -1.7%, and Morgan Stanley (NYSE:MS) -1.5%.
- XLF -1.1%
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
Mon, Dec. 8, 10:28 AM
- A combination of new regulations and near-zero interest rates has some banks - including JPMorgan (NYSE:JPM), Citigroup (NYSE:C), HSBC, Deutsche Bank (NYSE:DB), and Bank of America (NYSE:BAC) - privately telling larger clients to take their deposits elsewhere or face fees on accounts which have long been free.
- “Ultimately my balances aren’t as profitable for the banks, and that’s going to impact my business,” says an executive with a title insurance company, complaining of sleepless nights amid negotiations with his bankers.
- BNY Mellon (NYSE:BK) has begun charging institutional clients money to park money in euros, and State Street (NYSE:STT) says itwill soon begin doing so.
- Some bankers are advising large clients to break up large deposits across a number of lenders (including smaller banks not subject to the new regulations), and other corporations are going to find themselves needing to build more sophisticated (and riskier) portfolios likely including vehicles like short-term bond funds and uninsured money-market funds.
Fri, Dec. 5, 10:19 AM
- Jamie Dimon has told JPMorgan (JPM +2.4%) staff that post-treatment tests show no signs of cancer, reports Bloomberg.
- Previously: Financial sector leads the way on strong jobs number
Fri, Dec. 5, 10:06 AM
- Among those counting on higher interest rates to boost profits are banks, insurers, and online brokers, and all are outliers to the upside in today's session after a strong November jobs report has rate hike expectations on the rise. The XLF is up 1%.
- TBTFs: Bank of America (BAC +2.1%), Citigroup (C +1.8%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.2%)
- Regionals (KRE +1.9%): Regions Financial (RF +2.6%), KeyCorp (KEY +2.3%), Huntington (HBAN +1.5%), BB&T (BBT +1.6%), Zions (ZION +4%)
- Custodials: BNY Mellon (BNY), State Street (STT +1.6%), Northern Trust (NTRS +1.8%)
- Life insurers: MetLife (MET +2.1%), Prudential (PRU +2.5%), Lincoln National (LNC +2.3%)
- Online brokers: Schwab (SCHW +3.8%), E*Trade (ETFC +3%), Ameritrade (AMTD +2.7%)
- Previously: Short end of yield curve on the move after jobs number (Dec. 5, 2014)
- Previously: Bonds and dollar higher, gold slumps after strong jobs report (Dec. 5, 2014)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
Fri, Dec. 5, 9:56 AM
- Highbridge's management has been mulling an exit for some time, reports Institutional Investor, and has been in discussions with JPMorgan (NYSE:JPM) for at least six months.
- The management team - led by CEO Scott Kapnick - would need financing for the deal (Highbridge manages $26B in assets),or an investment from a third party. Alternative investment firms typically sell for about 5x revenue, according to one banker.
- As of the end of 2007, JPMorgan was the world's biggest hedge fund manager with $44.7B in AUM. It ranks #2 this year, behind Bridgewater Associates.
- For Highbridge, a split allows it to break free of Dodd-Frank restrictions and from having to compensate employees with JPMorgan stock - both competitive disadvantages compared to other hedge funds.
Tue, Dec. 2, 3:42 PM
- "Our concern is that the market has become complacent on the setting of the SIFI surcharge for the mega banks, which means there may be surprise at just how onerous the surcharge could be for JPMorgan (NYSE:JPM), Citigroup (NYSE:C), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS)," writes Guggenheim's Jaret Seiberg.
- The Fed is expected to announce the capital surcharge on December 9.
- Previously: U.S. banks to be hit with tougher capital rule
Mon, Nov. 17, 8:05 AM
- Dag Skattum spent more than two decades at JPMorgan (NYSE:JPM), eventually rising to co-head of global M&A in 2006, before exiting along with the boom in 2007. After six years at P-E firm TPG, he's returning to the bank as vice-chairman of EMEA. Among his roles will be leading a strategic advisory council that will help mentor JPMorgan's future dealmaking stars.
- It's the latest in a series of European hires for JPMorgan which is looking to overtake Deutsche Bank as #1 in investment banking fee rankings for the region.
Sat, Nov. 15, 5:00 PM
- JPMorgan (NYSE:JPM) has settled a lawsuit by Texas mineral-rights owners who accused the bank of cheating them of $681M in compensation for drilling rights in the Eagle Ford Shale.
- The case went to trial Nov. 12 after deal talks stalled.
- The jury has now been excused. The Trust's lawyer believes "a sufficient number of beneficiaries" will now sign the settlement.
- Source: Bloomberg
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