Oct. 14, 2014, 8:58 AM
- A key component of JPMorgan's (NYSE:JPM) outsized legal expense ($1B after-tax, or $0.26 per share), says CFO Marianne Lake on the earnings call, was related to the investigation over foreign-exchange trading, and in other news this morning, JPMorgan's chief currency trader in London has reportedly exited the bank.
- Conference call webcast and presentation slides
- Page 3: Tangible book value per share of $44.13 is up from $39.51 a year ago. Last night's close of $58.16 is 1.32x book.
- Pages 4-7: Overhead ratio of 56% vs. 62% a year ago, number of branches falls to 5,613 rom 5,652, active mobile customers of 18.351M up from 14.993M. Deposit margin of 2.20% falls 12 basis points Y/Y, but net interest income was higher thanks to 9% growth in deposits. Mortgage originations of $21.2B down from $40.5B.
- Page 8: FICC revenue - which had been dropping at double-digit Y/Y rates - turns upward, growing 2% from a year ago.
- Page 10: Asset management net income of $572M up 20% Y/Y. AUM net inflows of $24B.
- Page 12: Firmwide adjusted expenses are expected to be above $58B this year; net charge-offs should be less than $5B - better than previously forecast.
- The Q&A begins momentarily.
- Shares -1.8% premarket
- Previously: JPMorgan: Interest income and FICC gain
Oct. 14, 2014, 7:04 AM
- Q3 net income of $5.6B of $1.36 per share vs. a loss of $400M and $0.17 one year ago. Results include a $1B, or $0.26 per share legal charge. Return on tangible common equity of 13%. Roughly $3B returned to owners in Q3 - $1.5B of repurchases and a $0.40 per share dividend.
- Consumer & Community Banking net income of $2.468B down 9% Y/Y, as the boost to income from lower credit loss provisions comes to and end. This quarter allowed a $200M reduction in loan-loss allowance vs. $1.6B one year ago. Noninterest expense of $6.3B falls 8% Y/Y thanks mostly to mortgage banking staff cuts. Net interest income of $11.4B gains a strong 4% from a year ago.
- Corporate & Investment Bank net income of $1.485B down 34% Y/Y; excluding the DVA, net income fell 40%. Banking revenue of $2.7B fell 6% - investment banking fees grew 2% thanks to strong equity underwriting (up 24%), but debt underwriting fees fell 16%. Markets & Investor Services revenue of $6.1B rises 15% Y/Y, with Fixed Income Markets revenue of $3.5B up 2%, with particularly strong action in currencies and emerging markets.
- Conference call at 8:30 ET
- Source: Press Release
- JPM -0.3% premarket
- Previously: Report: JPMorgan EPS $1.36 vs consensus of $1.39
Oct. 14, 2014, 4:32 AM| Oct. 14, 2014, 4:32 AM | 2 Comments
Oct. 13, 2014, 5:30 PM
Jul. 15, 2014, 8:46 AM
- The trading environment for H2 will probably look a lot like H1, says JPMorgan (NYSE:JPM) CFO Marianne Lake, perhaps sandbagging to set up the bank to blow past estimates again in Q3.
- The conference call is now underway and can be heard here.
- Q2 earnings presentation is here.
- Dimon: I feel great. I'm getting the best treatment from the best doctors in the world. The prognosis remains excellent. His preference is stay on as CEO for 3-7 more years, but the board is preparing for succession. He touts JPMorgan's deep bench and says any of the current team could run a major financial company.
- More from Lake: Speaking on the earnings call, she says the momentum in business banking - originations rose 46% Y/Y and 27% Q/Q in Q2 - has continued into Q3.
- Previously: JPMorgan +1.8% after blowing past estimates
- JPM +2.5% premarket
Jul. 15, 2014, 7:17 AM
- Q2 earnings of $6B or $1.46 per share includes $500M or $0.13 per share in after-tax legal expense. Estimates were for earnings of $1.31 per share. About $3B returned to shareholders - $1.5B stock buyback and $0.40 dividend.
- Consumer & Community Banking net income of $2.4B fallsl 21% Y/Y, with net revenue of $11.4B off 5%. Net interest income of $7B falls 2%. Noninterest revenue of $4.5B down 9% thanks to mortgage slowdown (originations fell 66% from a year ago). Credit loss provision of $852M compared with a benefit of $19M a year ago. Noninterest expense of $6.5B falls 6% driven by job cuts in mortgages.
- Corporate & Investment Bank net income of $2B fallsl 25% Y/Y on revenue of $9B, off 6% (excluding impact of DVA). Banking revenue of $3.1B off 2%, with higher advisory fees and equity underwriting fees offset by lower debt underwriting fees. Markets & Investor Services revenue of $5.9B falls 12%, with fixed income revenue of $3.5B off 15%.
- Conference call at 8:30 ET
- Previously: JPMorgan Chase beats by $0.30, beats on revenue
- JPM +1.8% premarket
Jul. 15, 2014, 7:04 AM
Jul. 14, 2014, 5:30 PM
Apr. 11, 2014, 9:19 AM
- "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
Apr. 11, 2014, 7:18 AM
- Not too much of surprise to anyone paying attention in recent weeks - JPMorgan (JPM) misses badly on both lines and leads off its Q1 results press release with "given industry-wide headwinds in Markets and Mortgage."
- Consumer & Community Banking revenue of $10.5B fell 10% from a year ago, with net income of $1.9B off 25%. Net interest income of $7B fell 3%. Noninterest revenue of $3.4B fell 22% as mortgage business continues to evaporate (off 68% from a year ago). Credit loss provisions rose to $816M from $549M a year ago. Noninterest expense of $6.4B fell 5% from last year as jobs were cut in mortgage banking.
- Corporate & Investment Bank net income of $2B fell 24% from a year ago on revenue of $8.6B off 15% (DVA alters the numbers a bit, but not materially). Fixed income markets revenue of $3.8B fell 21% from last year.
- Commercial Banking net income of $578M fell 3% from a year ago on revenue of $1.7B off 1%.
- Dividend this quarter is going to $0.40 per share from $0.38. $400M of stock bought back in Q1; authorization of $6.5B through Q1 of 2015.
- ROTCE of 13%; Basel III Tier 1 common ratio of 9.5%.
- CC at 8:30 ET
- Q1 results
- Shares -2.4% premarket
Apr. 11, 2014, 7:03 AM
Apr. 11, 2014, 12:05 AM
Apr. 10, 2014, 5:30 PM
Jan. 14, 2014, 9:03 AM
- "It is a tough rule," says JPMorgan (JPM) CFO Marianne Lake, speaking about the Volcker rule on the earnings call. "The regulators have laid out stringent standards," but they're not expected to have a material impact on the bank's results.
- Poor mortgage banking results aren't expected to turn soon as management guides for another decline in production in Q1.
- First there was the DVA, now there's the FVA. The bank in Q4 implemented a Funding Valuation Adjustment for its OTC derivatives and structured notes, "reflecting an industry migration towards incorporating the cost or benefit of unsecured funding into valuations." It resulted in a $1.5B charge in Q4 (against total net income of $5.3B, or $1.30 per share).
- Among the quarter's bright spots is asset management: Net inflows of $23B for the Q brought AUM to $1,598T, up 12% Y/Y. Net income for the unit of $568M is up 17.6% from a year ago.
- From the pre-call call with reporters: Asked if he's considered resigning or been pressured to do so, Jamie Dimon responds, "No, no, it's all up to the board" ... "Which you chair," responded the reporter.
- Presentation slides
- Earlier JPM earnings coverage
- Shares +0.6% premarket
Jan. 14, 2014, 7:19 AM
- Excluding a number of extraordinary charges and gains, Q4 EPS was $1.40 vs. the headline $1.30, consensus $1.33, and $1.35 a year ago. Among those items is a $1.1B or $0.27 per share charge for legal expenses, including the most recent settlement for the Madoff case. Revenue of $24.1B was off 1% from a year ago.
- Consumer & Community Banking net income of $2.4B up 19% Y/Y on revenue of $11.3B, off 8%. Net interest income of $7.1B is off 3% on continuing spread compression. Noninterest revenue of $4.3B is off 17% thanks to slow mortgage business (originations of $23.3B fell 54% from last year). Boosting the unit, though, is the provision for credit losses - just $72M vs. $1.1B a year ago. Noninterest expense of $7.3B off 8% Y/Y thanks to lower mortgage servicing costs.
- Corporate & Investment Bank net income of $858M off 57% Y/Y or revenue of $6B off 21% thanks to an accounting change and the DVA. Banking revenue of $3B is off 4%. Investment banking fees of $1.7B off 3% - led by lower fixed income underwriting fees of $801M off 19%.
- CC at 8:30 ET
- Press release
- JPM -0.8% premarket
Jan. 14, 2014, 7:00 AM
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