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Oct. 16, 2015, 6:24 PM
- First Goldman Sachs canned 20 analysts for cheating on training tests; now a source tells Bloomberg that JPMorgan Chase (JPM +0.9%) dismissed 10 analysts this past month for similar cheating.
- The analysts were junior bankers, Bloomberg says, and some were based in New York and some in Latin America.
- Are we seeing the beginning of a wave? Firms may be undergoing a cultural shift after more than $100B in litigation and fines from the global financial crisis.
- Previously: Goldman fires analysts for cheating (Oct. 16 2015)
Oct. 14, 2015, 8:10 AM
- "Analyst estimates appear high [for Q4]," said JPMorgan (NYSE:JPM) CFO Marianne Lake on the earnings call last night. She's speaking of markets revenue (which fell 16% in Q3). It's early in Q4, she reminds, but so far things have been pretty quiet.
- Earnings call transcript
- On M&A: The pipeline is "constructive" and "pretty good."
- On equity capital markets: Revenue dropped by double-digits in Q3, but she expects a pick-up this quarter.
- On debt capital markets: Last year's Q4 was a strong one, so comps will be tough.
- BAML reiterates its Buy rating on the JPMorgan. Assuming three rate hikes and flat markets revenues, the team still sees the bank posting 14% EPS growth next year.
- Previously: JPMorgan slips after reporting sluggish quarter (Oct. 13)
- Previously: JPMorgan Chase misses by $0.05, misses on revenue (Oct. 13)
- JPM -1.5% premarket
Oct. 13, 2015, 5:38 PM
Oct. 13, 2015, 4:29 PM
- Q3 net income of $6.804B or $1.68 per share includes $2.2B or $0.57 per share of tax benefits and $1B or $0.26 per share of after tax legal expense. The adjusted number of $1.32 compares to $1.37 expected.
- Consumer & Community Banking net income of $2.630B up 4% Y/Y, with revenue of $10.879B down 4%. Noninterest expense of $6.2B slipped 1%. Mortgage banking net income of $602M up 29%, on revenue of $1.6B down 23%.
- Corporate & Investment Bank net income of $1.464B down 13% Y/Y, with revenue of $8.168B down 10%. Markets & Investor Services revenue of $5.4B down 16%; excluding revenue decline related to business simplification, markets revenue would have been down 6%., and fixed income markets revenue down 11%. Equity markets revenue is a strength, up 9%.
- Dimon: "We saw the impact of a challenging global environment and continued low rates."
- Conference call at 5 ET
- Presentation slides
- Previously: JPMorgan Chase misses by $0.05, misses on revenue (Oct. 13)
- JPM -0.8% after hours
Oct. 13, 2015, 4:19 PM
- JPMorgan Chase (NYSE:JPM): Q3 EPS of $1.32 misses by $0.05.
- Revenue of $23.54B (-6.4% Y/Y) misses by $150M.
- Shares -1.56%.
Oct. 13, 2015, 7:34 AM
- The bank hopes to save tens of millions by eliminating support for BlackBerry next year, and forcing some employees to pay for their own devices, whether they're BlackBerry or others, according to the WSJ.
- This move is part of a broader one by banks to shave costs in an era of sluggish revenue. For example: When JPMorgan (NYSE:JPM) reports its Q3 after the close today, EPS is expected to edge higher even as revenue is anticipated to have fallen 2%.
- The BlackBerry action may not seem like much, but taken with other moves like cutting down on 5-star hotel stays for traveling workers, sharing of desks, and a host of others, the bank will save hundreds of millions of dollars per year.
Oct. 12, 2015, 5:35 PM
Oct. 12, 2015, 3:46 PM
- The traditional kicker-off of bank earnings season, JPMorgan (NYSE:JPM) was joined in that last quarter by Wells Fargo. Fair enough. But when Bank of America decided to release its Q3 on Oct. 14 - and at the same 7 AM ET as JPMorgan - the Bank of Dimon moved its report to after the close tomorrow, with the conference call to follow.
- It may just be a one quarter trend, as JPMorgan has already announced its Q4 report to take place the morning of Jan. 14.
Oct. 7, 2015, 8:33 AM
- A badly-burned Bank of America (NYSE:BAC) won't do it anymore, but JPMorgan (NYSE:JPM) - aiming to make up for slowing business in its mortgage operation - is increasingly buying loans from smaller lenders, writes Dan Freed for Reuters.
- In H1, the Bank of Dimon bought 62% of the $58B in residential mortgages added to its books, up from 56% in 2014 and 37% in 2011. According to Inside Mortgage Finance, JPMorgan has shown the biggest increase among peers in so-called correspondent lending.
- "As they gain more confidence about the environment, they go right back to the correspondent channel for more volume," says analyst Charles Peabody. "There's more risk in being that far away from the customer," says BofA's Steve Boland, who leads mortgage and auto lending. For its part, JPMorgan says it only works with "experienced, well-managed, and high quality lenders," and reviews every loan in detail.
- Wells Fargo's (NYSE:WFC) Eric Stoddard - who runs the bank's correspondent business - says it's cheaper to buy mortgages from other lenders than to make the loans itself.
- "I think Bank of America's (policy) is a little foolish," says lender Ken Perimutter, whose PERL expects to make about $1.6B in home loans this year, and sell about 60% of those to JPMorgan.
Oct. 7, 2015, 7:59 AM| Oct. 7, 2015, 7:59 AM | 5 Comments
Oct. 5, 2015, 3:31 PM
- The Street has priced in earnings declines for pretty much every sector, but Q3 and Q4 estimates for the financials have barely budged, and consensus sees Q3 results 10% above that of a year ago.
- Morgan Stanley's Huw van Steenis, however, sees FICC revenue declines of 10-25% - far more than the 5% or so that's been talked about by bank managements at recent investor conferences - as the commodity price crash combines with collapsing fixed-income trading, and the lack of volatility in forex action.
- With just $20B in FICC revenues, says van Steenis, Q3 is shaping up to be the second worst quarter for banks in the last two years. Leaving his own bank (NYSE:MS) out of the analysis, he sees FICC revenue declines of 17% at JPMorgan (NYSE:JPM), 9% at Goldman (NYSE:GS), and 6% at BofA (NYSE:BAC) and Citi (NYSE:C).
- Bottom line: "On EPS, we are 4% below consensus on average across our coverage for 2015, and 5% below for 2016. The biggest delta is for Barclays (NYSE:BCS), BNP Paribas (OTCQX:BNPQY), and Goldman in 2015, and SocGen (OTCPK:SCGLY), HSBC, and BNP in 2016."
- Source: ZeroHedge
Oct. 2, 2015, 9:08 AM
- September's weak print has combined with a sizable downward revision to August's already so-so numbers to push rate hike expectations into late Q1 or Q2 of next year.
- S&P 500 futures are down 1.2%, but the Financial SPDR (NYSEARCA:XLF) is off 2% as the yield-starved names which make up the ETFs holdings look like they're going to have to wait at least a little while longer for higher rates. The SPDR Regional Bank ETF (NYSEARCA:KRE) is lower by 2.75%.
- Premarket action in individual names: Citigroup (NYSE:C) -2.25%, BofA (NYSE:BAC) -2.8%, JPMorgan (NYSE:JPM) -3.1%, Fifth Third (NASDAQ:FITB) -2.6% (also hit with a Goldman downgrade to Neutral), Regions Financial (NYSE:RF) -1.8%, Schwab (NYSE:SCHW) -2%, E*Trade (NASDAQ:ETFC) -2.3%, MetLife (NYSE:MET) -2%.
- Previously: Futures turn sharply lower after weak jobs report (Oct. 2)
- Previously: Treasurys to the moon after lame jobs report (Oct. 2)
- Previously: Big miss for jobs numbers (Oct. 2)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KBWR, KRU, RWW, RYF, FINZ, KRS
Oct. 1, 2015, 5:11 PM
- JPMorgan Chase (NYSE:JPM) will pay almost a third of a $1.86B settlement to resolve accusations that a dozen big banks conspired to limit competition in the credit default swaps market, Bloomberg reports.
- JPM reportedly will pay $595M, followed by Morgan Stanley (NYSE:MS) with $230M, Barclays (NYSE:BCS) at $175M, Goldman Sachs (NYSE:GS) at $164M, Credit Suisse (NYSE:CS) at $160M and Deutsche Bank (NYSE:DB) at $120M; BofA (NYSE:BAC), BNP Paribas (OTC:BNPZY), UBS, Citigroup (NYSE:C), Royal Bank of Scotland (NYSE:RBS) and HSBC would pay less than $100M each.
- The deal would avert a trial and end years of litigation by hedge funds, pension funds, university endowments, small banks and other investors, who sued as a group.
Sep. 30, 2015, 7:42 AM| Sep. 30, 2015, 7:42 AM | 10 Comments
Sep. 18, 2015, 9:44 AM
- "I don’t want to retire…as long as the board wants me, I can still do my job, have my health, I want to work hard,” says JPMorgan (NYSE:JPM) CEO Jamie Dimon, responding to a question at the Barclays financial services conference.
- With the bank occasionally being criticized for not having a deep bench, Dimon reiterates the strength of his management team, and says the board and he are comfortable with the choices they have for CEO replacements both immediately and in the long term.
- Turning to trading revenue, Dimon says he expects Q3 results to be similar to that of other banks. Presenting at the same conference earlier this week, both BofA and Citi tipped off an expectation of about a 5% decline in Q3.
Sep. 16, 2015, 12:39 PM
- Merger-and-acquisition volume in 2016-17 should be $3.3T-$4.5T, says Guggenheim, up from its previous forecast of $2.7T-$4.5T. The current drivers of M&A are likely to remain in place; macroeconomic conditions may remain uneven; and several specific factors may compel consolidation in certain industries. Health care, media, and telecom activity has been robust, and should stay so. Activity in energy should increase, but banking M&A should stay subdued.
- The winners? U.S. bulge bracket and boutique firms have gained market share at the expense of European and other non-U.S. companies. Showing the most market share gains is Goldman Sachs (NYSE:GS), followed by Morgan Stanley (NYSE:MS), JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), and Citigroup (NYSE:C). Goldman remains Guggenheim's Best Idea, and BofA and Ciit remain buys, partly thanks to the M&A thesis.
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