JPMorgan Chase & Co.NYSE
Mon, Oct. 17, 3:36 PM
- It's a valuation call by the BMO Capital team of James Fotheringham and Joseph Recendez after the sizable divergence in the two stocks' paths. JPMorgan (NYSE:JPM) is flat since Sept. 1, while Wells Fargo (NYSE:WFC) has dropped 12.5%. Going back to the Feb. 11 bottom, JPMorgan's 20.7% advance beats Wells by a full 2,400 basis points.
- They're not yet bulls on Wells Fargo (the upgrade is to Market Perform from Underperform), but do believe the stock has priced-in the cross-selling scandal.
- "JPMorgan shares are running out of upside," they say, downgrading to Market Perform from Outperform.
Mon, Oct. 17, 9:52 AM
- Customers of offerings like JPMorgan's (NYSE:JPM) Sapphire Reserve card can't believe their good fortune, but bank shareholders can't be faulted for wondering whether there's going to be any profits from the growing rewards war.
- "You have five or six big national players and they are going around killing one another," says Oppenheimer's Chris Kotowski.
- It's the banking version of a loss leader. The upfront rewards are well above the annual fee, but if customers hold onto the card after the first year, and better yet hold a balance, they could become profitable.
- "It has been a huge success," says the bank's card boss, Kevin Watters. Speaking on Friday's earnings call, CFO Marianne Lake declined to say how much card debt customers need to take on before a profit can be turned.
- Citigroup's (NYSE:C) spending on cards has also been aggressive, but personal finance gurus say its Prestige premium card needs to up its rewards game to compete with JPMorgan's offering.
- Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC) also naturally want to boost card business, but until now have mostly refrained from joining the war, and earlier this month, American Express (NYSE:AXP) boosted rewards on its Platinum card, though saying publicly the move wasn't in response to JPMorgan and Citi.
Fri, Oct. 14, 6:49 PM
- More firms are set to climb on the CBS-Viacom deal examination train, as the management team at CBS (CBS -0.2%) is close to hiring Goldman Sachs (GS +1.9%) and JPMorgan Chase (JPM -0.3%) to advise it on a possible re-merger, Bloomberg reports.
- While those banks will advise CEO Les Moonves and the leadership, that's separate from the board's special committee hiring Lazard as it announced last week. CBS could add in other banks as well.
- Earlier today, the special committee at Viacom (VIA -0.3%, VIAB +0.5%) confirmed it was working with Morgan Stanley as well as Allen & Co. and LionTree to look at the deal.
- Meanwhile, while Moonves has said he'd want autonomy in running such a combination, Sumner and Shari Redstone (who control the two companies, and have said they don't intend to give up control) reportedly aren't willing to offer Moonves a stake or voting control in National Amusements, the family holding company.
Fri, Oct. 14, 8:35 AM
- Speaking to reporters ahead of the earnings call, CFO Marianne Lake says the bank has found nothing systemic as it conducts a "deep dive" into potential cross-selling issues. "We can't have zero defects ... if we find someone who's abusing our code of conduct, we will take action."
- JPM +1.3% premarket after topping forecasts.
- The conference call is just getting underway.
- Presentation slides
Fri, Oct. 14, 7:15 AM
- Q3 net income of $6.286B or $1.58 per share vs. $6.804B and $1.68 one year ago on revenues of $25.5B up 8% Y/Y. Net interest income of $11.9B up 6%. Noninterest revenue of $13.6B up 10%. Noninterest expense of $14.5B down 6%.
- Consumer & Community Banking net income of $2.204B down 16% Y/Y, though revenues rose 4%. Mortgage banking revenue of $1.874B up 21%. Card, commerce, auto revenue flat. Noninterest expense of $6.51B up 4%. Provsions of $1.294B up from $389B.
- Corporate & Investment Bank net income of $2.912B about a double from last year, with revenue higher by 16%. Markets & Investor Services revenue of $6.515B up 21%, with fixed income revenue of 48%. Banking revenue of $2.9B up 6%, with investment banking revenue up 14%. Noninterest expense of $4.9B down 20% thanks to lower legal expense.
- ROTCE of 13% for the quarter. CET 1 ratio of 11.9%. Net payout ratio of 63%, with $3.8B returned to shareholders during quarter.
- Conference call at 8:30 ET
- Previously: JPMorgan Chase beats by $0.19, beats on revenue (Oct. 14)
- JPM +1.9% premarket
Fri, Oct. 14, 6:44 AM
Thu, Oct. 13, 5:30 PM
Tue, Oct. 11, 8:15 AM
- Charles Peabody moves to Compass Point, and this morning initiates coverage of JPMorgan (NYSE:JPM) with a Sell rating just ahead of the bank's Q3 earnings report.
- Peabody expects earnings growth to slow further in 2017 due to higher credit costs, tougher capital markets, and headwinds in wealth management, mortgages, and credit cards.
- The $50 price target suggests 27% downside from yesterday's close of $68.64.
Thu, Oct. 6, 11:14 AM
- Sandler O'Neill's Jeffrey Harte's earlier reported valuation-based downgrade of JPMorgan (JPM -0.8%) also comes with a recommendation to consider less expensive and less widely-owned TBTF names like Bank of America (BAC -0.2%) and Citigroup (C -0.3%).
- Turning back to JPMorgan and its Q3 earnings set for release on October 13, Harte, sees a 4% sequential decline in revenues to $24.2B, with Consumer and Community Banking revenues down 2%, and Corporate & Investment Banking revenues down 11% (thanks to seasonal factors).
- Look for expenses to be up 4%, but down 1% ex-legal costs.
Thu, Oct. 6, 8:37 AM
- Citing the bank's relative share outperformance of late, analyst Jeffrey Harte downgrades JPMorgan (NYSE:JPM) to Hold from Buy. The $72 price target is maintained, and suggests about 6% upside.
- JPM is higher by just 2.5% YTD, but that's 150 basis above the KBE index. The Bank of Dimon is doing even better against TBTF peers like Bank of America, Citigroup, and Wells Fargo - all of which are in the red in 2016.
Wed, Oct. 5, 1:14 PM
- The JPMorgan (NYSE:JPM) boss purchased 500K shares of his company's stock on what's proving to be the big market bottom of February 11 this year. The stock has surged 25% since, giving Dimon a gain of $7.25M.
- Dimon to Mike Mayo: "That's why I'm richer than you."
Tue, Oct. 4, 2:19 PM
- A Bloomberg report says the ECB is likely to gradually wind down bond purchases ahead of the scheduled March 2017 end of its QE program. The central bank is currently buying €80B per month of government and corporate paper, and may begin to slow that amount by €10B per month, according to the story.
- Yields are higher in Europe and the U.S., with the 10-year U.S. Treasury up five basis points to 1.675% and the German 10-year Bund yield is up four bps to -0.048%. TLT -1.1%, TBT +2.2%
- Though the Dow and S&P 500 are each lower by 0.5%, the yield-starved XLF is up 0.6%, with Bank of America (BAC +2.1%), Citigroup (C +1.9%), and JPMorgan (JPM +0.4%) leading the way. Shrouded in scandal, Wells Fargo (WFC -0.2%) continues to underperform.
- Other names: Regions Financial (RF +1.5%), KeyCorp (KEY +2.1%), BB&T (BBT +1.4%), Schwab (SCHW +1.5%), MetLife (MET +1.1%), Prudential (PRU +1.3%).
- ETFs: XLF, FAS, FAZ, KRE, UYG, VFH, KBE, IYF, BTO, IAT, IYG, FNCL, SEF, FXO, KBWB, QABA, KBWR, RYF, FINU, KRU, RWW, XLFS, FINZ, KRS, JHMF, WDRW, DPST, FAZZ, FNCF
Tue, Oct. 4, 6:24 AM
Mon, Oct. 3, 9:47 AM
- September monthly performance was: -0.52%
- 52-week performance vs. the S&P 500 is: -11%
- $0.16 in dividends were paid in September
- Top 10 Holdings as of 8/31/2016: Apple Inc (AAPL): 5.01757%, Microsoft Corp (MSFT): 4.59213%, Exxon Mobil Corp (XOM): 3.65506%, Johnson & Johnson (JNJ): 3.32616%, General Electric Co (GE): 2.90192%, Procter & Gamble Co (PG): 2.3854%, Wells Fargo & Co (WFC): 2.34646%, Pfizer Inc (PFE): 2.17377%, JPMorgan Chase & Co (JPM): 2.08563%, Amazon.com Inc (AMZN): 2.02582%
Mon, Oct. 3, 9:04 AM
- September monthly performance was: +0.5%
- 52-week performance vs. the S&P 500 is: -3%
- $0.04 in dividends were paid in September
- Top 10 Holdings as of 6/30/2016: JPMorgan Chase & Co (JPM): 3.02927%, US Treasury Note 1.125%, Citigroup Inc (C): 2.72752%, Bank of America Corporation (BAC): 1.75979%, General Electric Co (GE): 1.64495%, Apache Corp (APA): 1.43672%, Merck & Co Inc (MRK): 1.40565%, Royal Dutch Shell PLC Class A (OTCPK:RYDAF): 1.39841%, Morgan Stanley (MS): 1.39796%, US Treasury Note 0.625%
Fri, Sep. 30, 11:37 AM
- The ADRs of Deutsche Bank are higher by 15% on a report it's near settling U.S. mortgage-related charges for just $5.4B (versus the $14B which had previously been floated).
- The move has lifted Europe out of the red, led by Germany's (NYSEARCA:EWG) 1% gain. The Dow's (NYSEARCA:DIA) 1% advance is leading the U.S. averages higher.
- Bank of America (BAC +3.1%), Citigroup (C +3.2%), JPMorgan (JPM +1.7%), Wells Fargo (WFC +0.7%), Goldman Sachs (GS +1.7%), Morgan Stanley (MS +2.9%). XLF +1.5%