Tue, Apr. 19, 12:19 PM
- Alongside former Citigroup rainmaker Michael Klein (who now runs his own boutique, M Klein & Co.), JPMorgan (NYSE:JPM) has been selected by The Kingdom to advise on the IPO of Saudi Arabian Oil Company, reports Bloomberg.
- Sources say Klein is providing strategic advice to the government, while JPMorgan is prepping the IPO and could be among the underwriters.
- Prince Mohammed bin Salman says the government plans to sell less than a 5% stake in the company, which is expected to have a market value in the trillions of dollars.
- JPMorgan was the sole international financial advisor on the $2.5B IPO of Saudi Arabian Mining Co. in 2008.
- Now read: Sale Of Saudi Aramco: 3 Things You Should Know (April 18)
Thu, Apr. 14, 8:45 AM| Thu, Apr. 14, 8:45 AM | 4 Comments
Wed, Apr. 13, 9:41 AM
- "We believe the consumer beat, better-than-feared [investment banking] results, visible cost discipline, and positive fee guidance will allow JPMorgan (JPM +3.3%) to outperform peers today - and offers a positive read-through to both capital markets and regional bank players, while questions on credit trends remain a key challenge for the sector," says Wells Fargo's Matthew Burnell.
- WSJ blog
- The good, according to Evercore's Glenn Schorr: Strong loan growth, consumer credit still strong, expansion in the consumer business, continued progress on expenses. The bad: Weak investment banking and trading, and pressure from energy loans.
- Baird's David George calls the results relatively "clean," with few non-core items swinging the numbers. Expectations were low, so that's helping things today.
- Oppenheimer's Chris Kotowski likes the increase in net interest margin following the Fed's December rate hike. The boost, he says, means credit quality other than in energy and mining remains "very, very solid."
- Now read: JPMorgan Earnings Are Rock Solid (April 13)
Wed, Apr. 13, 9:31 AM
- "They have a job to do, and we have to conform to it," says JPMorgan (NYSE:JPM) CEO Jamie Dimon, commenting on his bank's living will having been rejected by regulators, and sounding like a man who has learned his lesson about complaining over whatever emanates from D.C., no matter how absurd. "We will do everything possible to fix this issue."
- Dimon finds himself quickly corrected by CFO Marianne Lake when he says the bank has "yet to take a loss" on energy-related investments. "We have taken a couple, actually," says Lake.
- Dimon on the consumer: "Consumer credit trends are favorable." On interest rates: "There is a chance it'll be different than people expect. They say it'll be gradual until it's sudden."
- Q1 presentation slides
- Previously: Stocks set for higher open on strong global rally (April 13)
- JPM +2.2%
- Now read: JPMorgan's Q1: $70 Is In Sight
Wed, Apr. 13, 8:12 AM
- As leaked last night, regulators have sent so-called living wills by five major U.S. banks back to the drawing board. JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), BNY Mellon (NYSE:BK), and State Street (NYSE:STT) have until Oct. 1 to revise their plans or face potential penalties.
- Official announcement
- Regulators were split on Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS), with the FDIC giving Goldman a thumbs down, but the Fed not, and just the opposite for Morgan.
- Citigroup (NYSE:C) is the only one of the major banks not to have their plan rejected, though both the Fed and FDIC found "shortcomings" that need to be addressed by July 2017.
- The next time you're thinking about complaining over some silly fee charged by your lender, have a thought for the armies of accountants, analysts, and lawyers the bank is paying to comply with D.C.'s whims.
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, FAZZ
- Now read: Financials Are Set To Miss Already Lowered Earnings Estimates
Wed, Apr. 13, 7:19 AM
- Q1 net income of $5.52B or $1.35 per share vs. $5.914B and $1.45 one year ago. Revenue of $24.1B down 3% Y/Y. ROTCE of 12% down 200 basis points.
- Tangible book value per share of $48.96 up 8% for the quarter. $3B of capital returned - $1.3B of buybacks and $0.44 per share dividend.
- Consumer & Community Banking net income of $2.49B up 12% Y/Y on revenue of $11.1B up 4%. Mortgage banking revenue of $1.9B up 7%. Noninterest expenses of $6.1B down 2%.
- Corporate & Investment Bank net income of $1.979B down 22% Y/Y on revenue of $8.135B down 15%. Investment banking revenue of $1.2B down 24%. Markets & investors services revenue of $5.7B down 13%. Fixed income markets revenue down 13%, equity markets revenue down 5%. Noninterest expense of $4.8B down 15%.
- Commercial Banking net income of $496M down 17% Y/Y, with provisions for credit losses rising to $304M from $117M in Q4 and $61M a year ago, primarily from energy.
- Conference call at 8:30 ET
- Previously: JPMorgan Chase beats by $0.09, beats on revenue (April 13)
- JPM +2.8% premarket
Wed, Apr. 13, 6:47 AM
Wed, Apr. 13, 4:42 AM
- At least half of the eight U.S. banks labeled "systemically important" are expected to receive "harsh verdicts" regarding their so-called living wills, sending them scrambling to revise plans about how they would handle a potential bankruptcy, WSJ reports.
- The move, which could come as soon as this week, would raise the prospect of higher capital requirements or other regulatory sanctions for some of the institutions, and underscore fears that the firms remain "too big to fail" without a taxpayer bailout.
- Related tickers: BK, STT, BAC, JPM, C, GS, MS, WFC
Wed, Apr. 13, 4:08 AM
- JPMorgan (NYSE:JPM) has cut about 5% of jobs at its Asia wealth management business, as it refocuses staff on serving clients with higher investment thresholds.
- The announcement comes just hours ahead of the company's Q1 results, and the earnings of major American financial institutions later this week.
- Bank of America, BlackRock and Wells Fargo will report tomorrow, and Citigroup on Friday.
Tue, Apr. 12, 5:30 PM
Mon, Apr. 11, 11:32 AM
- Focusing on "too big to fail" is too narrow a lens with which to analyze and make decisions about bank size and concentration, says the team at KBW, taking note of increased chatter of late about a forced breakup of the nation's largest lenders.
- Returns are part of the mix too, and if they're poor at the mega-banks, this limits credit creation in the economy - a signal, says KBW, that companies must "radically restructure" to get their stock prices above at least tangible book value.
- Looking at the stock prices of Wells Fargo (NYSE:WFC), JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), and Citigroup (NYSE:C) during the past five years, KBW says Wells has traded above TBV throughout the time period - suggesting the bank is consistently creating returns above its cost of capital. Citi, on the other hand, has not traded above TBV for the whole period - "a clear market signal that the company should consider much more radical restructuring to create profitable business that can grow."
Fri, Apr. 8, 2:45 PM
- According to a LinkedIn analysis done for the WSJ, analysts and associates who exited investment banks in 2015 had stayed an average of 17 months vs. 26 months a decade ago. Going back another ten years, the average tenure was 30 months.
- Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), Citigroup (NYSE:C), and Credit Suisse (NYSE:CS) are among the banks altering age-old traditions for young bankers - crazy-long hours of drudgery, slow advancement - to better suit the attitudes of this particular generation of worker bees.
- “We’re focused on trying to understand what’s important to the folks we hire right out of school,” says John Waldron, co-head of investment banking at Goldman.
- "Every day I can see the direct result of my action," says an ex-employee of Moelis (NYSE:MC), who gave up all-nighters preparing pitch books for the boutique investment bank to instead work for a mobile-gaming startup.
Fri, Apr. 8, 4:53 AM
- Credit Suisse switches its top big-bank picks, moving JP Morgan (NYSE:JPM) to first spot, and Citigroup (NYSE:C) out of first into second.
- JPM: Target $75. Implied upside 28%. "2015 was no easy year; JPM maneuvered through just fine posting above average revenue growth and returns. Results were all the more impressive coupled with targeted and achieved G-SIB surcharge reductions. Sustained share price outperformance relies on continued above average ROE generation."
- C: Target $55. Implied upside 32%. "Citi is a value play in U.S. banks sector, trading at 0.7x TBV (vs 1.2x peers; vs Citi’s financial crisis trough of 0.4x – the latter being a unique time; a good bit of regulatory change ought to protect from a return to those scenarios) and has declined 18% YTD (vs -13%) on deteriorating EM and macro backdrop."
- Now read Sell The Banks: The Invisible Hand Is Broken »
Thu, Apr. 7, 4:49 AM
- "Last year - in fact, the last decade - was an extraordinary time for our company. We managed through the financial crisis and its turbulent aftermath."
- "We are not proud of the fact that our stock performance has only equaled the S&P 500 since the JPMorgan Chase & Co. merger with Bank One on July 1, 2004 and essentially over the last five to 10 years."
- "Our fortress balance sheet, our ability to survive extreme stress of multiple types, our extensive de-risking and simplification...have enabled us to eliminate the risk of failing...JPMorgan Chase alone has enough loss absorbing resources to bear all the losses, assumed by CCAR, of the 31 largest banks in the U.S."
- Read the full letter here
- JPM -0.5% premarket
Wed, Apr. 6, 12:42 PM
- It's not just the companies who won't be merging that are affected, but the bankers who advise on those deals.
- Pfizer's advisers on its now-kaput Allergan purchase - Goldman Sachs (NYSE:GS) and Moelis & Co. (NYSE:MC) among them - were set to reap $120M-$150M in fees. Allergan's - JPMorgan (NYSE:JPM) and Morgan Stanley (NYSE:MS) - had been looking at a $160M-$200M payday.
- In all, U.S. investment banks have advised on more than $700B of inversion deals since 2011, including $240B worth last year. Credit Suisse estimates inversion deal fees have made up about 5-6% of overall M&A fees.
- Smaller firms may feel the sting the most, with shops like Lazard (NYSE:LAZ) and Greenhill (NYSE:GHL) joining Moelis in that category.
- “Poof goes the inversion," says one investment banker. "They’ve killed the goose that was laying some of our M&A eggs."
Tue, Apr. 5, 4:42 AM
- Banks are paying more attention to large cash transfers that could be a sign of money laundering or other shady activity.
- JPMorgan Chase (NYSE:JPM) has now capped ATM withdrawals at $1,000 per card daily for noncustomers across its 18K locations nationwide.
- However, the move doesn't affect the bank's own customers, whose maximum daily withdrawals are set depending on the client's account type.
JPMorgan Chase & Co. is a financial holding company that provides financial and investment banking services. It offers a range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt... More
Industry: Money Center Banks
Country: United States
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