Thu, Jul. 14, 9:27 AM
- Shares should trade modestly higher today, says JPMorgan (NYSE:JPM) bull David George of Baird. The big jump in FICC revenue was the big driver of the earnings beat, he says, noting the bank clearly benefitted from the Brexit-related volatility.
- Jefferies' Ken Usdin also points out the strong trading result, and adds in good results from investment banking, mortgage, and card fees, as well as lower legal costs.
- While results were encouraging, says Nomura's Steven Chubak, the stock already trades for 1.3x tangible book. Don't look for a big move in the stock absent a more constructive outlook on trading or net interest income. With the yield curve flattening, upward revisions to 2017 estimates could "prove elusive."
- WSJ blog
- JPM +2.8% just ahead of the open.
- Previously: JPMorgan on the move after earnings beat (July 14)
Thu, Jul. 14, 6:58 AM
- Consumer & Community Banking revenue of $11.45B up 4% Y/Y; net income of $2.656B up 5%; expenses of $6B down 3%. Credit costs of $1.2B up $499M thanks to a reserve build this year vs. a release one year ago. Average loans up 11% Y/Y, core loans up 23%. Average deposits up10%. Active mobile customers of 25M, up 18%.
- Corporate & Investment Bank revenue of $9.165B up $442M Y/Y; net income of $2.493B up $152M. Investment banking revenue of $1.492B down $254M thanks mostly to lower equity underwriting fees. Fixed income revenue of $3.959B up more than $1B from a year ago. Expenses of $5.1B down 1% Y/Y.
- Commercial Banking net income of $696M up 33% Y/Y. Asset Management net income of $521M up 16%.
- Full-year NII is expected to be higher by about $2B Y/Y. Noninterest revenue should be about $50B. Adjusted interest expense should be $56B. Net charge-offs should be less than or equal to $4.75B.
- CET1 ratio of 11.9% up 20 bps for the quarter, up 90 bps from a year ago. Tangible book value per share of $50.21 up from $48.96 last quarter and $46.13 a year ago.
- Earnings presentation
- CC at 8:30 ET
- Previously: JPMorgan Chase beats by $0.12, beats on revenue (July 14)
- JPM +2.6% premarket
Thu, Jul. 14, 6:47 AM
Tue, May 24, 10:22 AM
- Stocks had already started the morning nicely in the green, but a blowout new home sales number for April has the homebuilders higher by about 2.5%, and the major indexes up by more than 1%.
- It's also got traders upping bets on a June rate hike, with another move to follow before year-end. That's boosting the yield-starved financials (XLF +1.5%), particularly the banks (KBE +2%).
- Among the financial movers: Bank of America (BAC +1.4%), JPMorgan (JPM +1.9%), Regions Financial (RF +1.8%), Fifth Third (FITB +2.1%), E*Trade (ETFC +2.9%), Interactive Brokers (IBKR +2.6%), MetLife (MET +1.8%), Prudential (PRU +2.2%), Lincoln National (LNC +1.8%), State Street (STT +2.1%)
Wed, May 18, 1:08 PM
- The meme of rates lower for longer has been stood on its head in the last 24 hours thanks to some decent economic data, but also surprisingly hawkish Fedspeak yesterday.
- The fixed-income world now believes remarks from the Fed's Williams and Lockhart yesterday may have been a preview of what we'll get when the real power speaks tomorrow - Fischer and Dudley - and then on May 27, when Janet Yellen gives a speech.
- Up at 2 ET are the minutes from the FOMC's April meeting.
- The 10-year yield is higher by five basis points to 1.82% and short-term rate markets have upped expectations for a Fed move this year.
- XLF +1.85%, KBE +3.15%, KRE +3.3%
- Bank of America (BAC +3.7%), Citigroup (C +4.2%), JPMorgan (JPM +3.2%), Wells Fargo (WFC +2.1%), U.S. Bancorp (USB +2.1%), Regions (RF +3.3%), KeyCorp (KEY +3.7%), PNC Financial (PNC +2.7%), Fifth Third (FITB +3.7%), Capital One (COF +1.9%), E*Trade (ETFC +4.4%), Schwab (SCHW +4.8%), MetLife (MET +2.9%), Prudential (PRU +3.4%), Lincoln National (LNC +4.2%), BNY Mellon (BK +2.3%), Northern Trust (NTRS +2.9%)
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, 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
Tue, Feb. 23, 2:38 PM
- Holding its investor day today, JPMorgan said it was going to add another $500M to energy-related loan-loss reserves. This followed a $67M provision in Q4, which at the time brought total oil and gas loss reserves to $815M (vs. a portfolio with book value of $44B).
- In addition, the bank said it could need to add another $1.5B to reserves should oil hang around $25 per barrel over the next 18 months. For perspective, prior to Q4, JPMorgan hadn't had to add to reserves for six years - in fact reserve releases were a big boost to profits across the industry.
- "When the biggest bank increases reserves for potential oil losses it sets a tone for the industry,” says Mike Mayo.
- Separately, the FDIC says bad loan provisions across the banking sector were $3.8B higher in Q4 than a year earlier.
- JPMorgan (JPM -3.5%), Citigroup (C -2.9%), Bank of America (BAC -2.9%), Wells Fargo (WFC -2%), U.S. Bancorp (USB -3%), Regions Financial (RF -3.8%), Comerica (CMA -4.2%), Zions (ZION -4.1%), PNC Financial (PNC -2%).
- ETFs: KRE, KBE, IAT, KBWB, QABA, KBWR, KRU, KRS
Thu, Feb. 11, 5:10 PM| Thu, Feb. 11, 5:10 PM | 33 Comments
Thu, Feb. 11, 2:37 PM
- Oil's lower by 3.3% today, but it's the financial sector (XLE -3.1%) again leading the S&P 500's 2.15% decline.
- For the year, the XLF is down by 17.9%, easily outpacing on the downside energy (down 13%) and the S&P 500 (down 11%).
- With the 10-year yield plunging all the way to 1.6% and short-term rates markets now beginning to price in Fed rate cuts this year, the banks are being hit particularly hard: Bank of America (BAC -8.1%), Citigroup (C -7.6%), JPMorgan (JPM -5.1%), Wells Fargo (WFC -2.9%), Goldman Sachs (GS -5.4%).
- Leading regionals (KRE -4.4%) lower are KeyCorp (KEY -5.9%), Huntington Bancshares (HBAN -4.9%), Fifth Third (FITB -5.4%), and PNC Financial (PNC -4.4%).
- ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, SEF, FNCL, FXO, KBWB, QABA, RYF, FINU, KBWR, KRU, RWW, FINZ, KRS, XLFS
- Previously: Lots of negative rate talk at Yellen hearing (Feb. 11)
- Previously: Insurers punished as rates plunge (Feb. 11)
Wed, Feb. 3, 10:25 AM
- This just in: The financial sector is having a worse go it this year than energy, with the XLF lower by 13.6% YTD vs. the XLE's 9% decline.
- Leading a big reversal from this morning higher open is the XLF's 2% decline. The S&P 500 is now off 1%, and the XLE "just" 0.85%.
- Among the issues for the financials are two items: 1) Hopes for a sustained rate hike cycle have been dashed, with the 10-year yield tumbling all the way to 1.82% currently from about 2.30% when the Fed hiked in mid-December. Fed speakers are all-of-a-sudden sounding very dovish (Dudley is the latest), and short-term rate futures are now pricing in just a 50% chance of even one Fed rate increase this year; 2) For lenders specifically, there's worry over their exposure to the crashing energy sector. No doubt better capitalized today than 10 years ago, losses are still losses even if they don't threaten the viability of the bank.
- JPMorgan (JPM -2.6%), Wells Fargo (WFC -3.6%), Morgan Stanley (MS -3.5%), KeyCorp (KEY -3.1%), PNC Financial (PNC -2%), Comerica (CMA -2.7%), Schwab (SCHW -3.8%), MetLife (MET -2.5%)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, BTO, IAT, SEF, IYG, FXO, FNCL, KBWB, FINU, QABA, KRU, KBWR, RWW, RYF, PSCF, FINZ, KRS, XLFS
Tue, Jan. 26, 9:58 AM
Mon, Jan. 25, 7:46 PM
- J.P. Morgan (JPM -2.3%) is agreeing to pay $1.42B in cash to settle many of the claims in an $8.6B lawsuit by failed investment bank Lehman Brothers.
- Lehman had charged J.P. Morgan with illegally forcing Lehman to hand over billions of dollars in collateral in the weeks leading up to its failure in September 2008.
- The payment doesn't settle every claim, but resolves the bulk of the suit, and allows post-bankruptcy Lehman to make another $1.5B distribution to its creditors.
Thu, Jan. 14, 8:20 AM
- The fourth quarter looks like it marked the time when credit costs stopped being a tailwind and began becoming a headwind for the banks, says Hedgeye's Josh Steiner, noting a reserve build of $0.03 per share. Loan loss provisions nearly doubled in the quarter as net charge offs jumped $100M sequentially (mostly related to energy).
- Steiner takes note of speedy loan growth - up 10.6% Y/Y and 3.4% sequentially during Q4 - but scratches his head over wisdom of accelerating lending into the end of the credit cycle.
- As for capital markets, M&A was the only strong area, with advisory revenue up 43% to $622M - a good through for shops like Goldman Sachs (NYSE:GS) and Lazard (NYSE:LAZ). Meanwhile FICC trading revenue fell 3%, equity trading fell 7%, and credit underwriting disappeared. "Flat is the new up in investment bank land," says Steiner's associate Jonathan Casteleyn.
- JPM is higher by 1.95% as the bank gets into its earnings call.
- Previously: JPMorgan higher after earnings beat (Jan. 14)
- Previously: JPMorgan Chase beats by $0.07, beats on revenue (Jan. 14)
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
Other News & PR