Tue, Apr. 14, 9:14 AM
- "Dialog with the Fed is getting better, but I don't think it is now or will ever be a transparent process," says JPMorgan (NYSE:JPM) CFO Marianne Lake on the earnings call. "Maybe by design," she adds.
- Presentation slides
- Asked if the bank has any interest on buying any of the assets of GE Capital, Lake demurs, telling listeners JPMorgan is happy to advise GE on the sales, but won't comment on what it might buy.
- Speaking to reporters before the call, Lake is optimistic this quarter's strong trading business results is the start of a trend, though while Q2 activity is looking strong so far, it will be slightly than the first quarter.
- Shares +1.3% premarket.
- Previously: JPMorgan Chase beats by $0.18, beats on revenue (April 14)
- Previously: "Robust" activity in FICC leads strong quarter at JPMorgan (April 14)
Tue, Apr. 14, 7:16 AM
Tue, Apr. 14, 7:15 AM
- Q1 net income of $5.914B or $1.45 per share vs. $5.269B or $1.28 one year ago. ROTCE of 14% vs. 13%. Q1 results include legal items footing to $0.13 per share.
- Consumer & Community Banking net income of $2.219B vs. $1.981B one year ago on revenue of $10.704B vs. $10.534B. Noninterest expense of $6.19B vs. $6.437B, thanks to lower mortgage banking and consumer & business banking costs.
- Corporate & Investment Bank net income of $2.537B vs. $2.125B a year ago on revenue of $9.582B vs. $8.842B. Markets & Investor Services revenue of $6.5B up 7% Y/Y thanks to "robust" client activity in FICC.
- Commercial Banking net income of $598M vs. $594M a year ago on revenue of $1.742B vs. $1.678B.
- Asset Management net income of $502M vs. $454M a year ago on revenue of $3.005B vs. $2.8B.
- Tangible book value per share of $45.45, up 9% Y/Y. Basel III CET ratio of 10.6%.
- Conference call at 8:30 ET.
- JPM +0.7% premarket.
- Previously: JPMorgan Chase beats by $0.18, beats on revenue (April 14)
Tue, Apr. 14, 7:01 AM
Mon, Apr. 13, 10:02 PM
- The scorecard since the Bank One/JPMorgan (NYSE:JPM) merger in 2004 - with Jamie Dimon taking the helm of the merged company - is a remarkable one, writes The Brooklyn Investor.
- Dimon has grown tangible book value per share at a rate of 14.1% annually. As comparison (though it isn't a perfect one), BVPS at Berkshire Hathaway (BRK.A, BRK.B) and Markel (NYSE:MKL) - hall of fame compounders - has grown by 10.1% and 12.5% respectively per year over the same time frame. Keep in mind that JPMorgan turned in this record during the period that includes the financial crisis.
- As for stock performance, someone owning Bank One when Dimon became CEO in 2000 and holding through the merger would have had a total return of 10.4% annually since - 170 basis points per year better than Berkshire Hathaway. The S&P Financials Index over that time has returned just 2.2% per year, and the S&P 500 only 4%.
- As for Dimon's defense against those arguing for a break-up of JPMorgan, BI's buying it, excerpting the CEO: "Our long-term view means that we do not manage to temporary P/E rations - the tail should not wag the dog."
- And finally, BI notes Jamie Dimon comes pretty cheap - the average percentage of profits paid to the JPMorgan CEO over the three years ended in 2013 was 0.09%, the lowest among the Too Big To Fail U.S. banks.
Mon, Apr. 13, 5:30 PM
Fri, Apr. 10, 11:56 AM
- "I think their ability to provide a full breadth of services, whether that be M&A advisory or capital markets and debt, in a seamless environment is important," says Actavis CEO Brent Saunders, whose firm has done a lot of business with JPMorgan (NYSE:JPM) over the years, and which just completed the Allergan purchase with the bank's assistance.
- "I can tell you that in terms of getting the Allergan deal done, which was fairly difficult from an execution perspective – it was quite complex – that capability was instrumental to us being able to achieve our objectives in the deal.”
- JPMorgan was the sole advisor to Actavis on the $72.7B deal and also worked as lead arranger on a $36.4B bridge credit facility and new revolving facilities worth $5B.
- Saunders: “I can’t imagine doing a deal like that with seven or eight firms – I’m not sure we could have got a deal of that complexity or size done without a full-service investment bank.”
- Source: WSJ
Fri, Apr. 10, 11:26 AM
- Credit Suisse adds four companies to its U.S. Focus List, led by Devon Energy (NYSE:DVN), which it sees as a pure-play energy stock that investors can feel comfortable holding for the long-term and is not pegged to the oil markets.
- The firm also likes DVN's defensive valuation, top quartile oil growth profile and further accretion possibilities from the EnLink Midstream assets; its $80 stock price target is among the Street's best outlook.
- Credit Suisse cites another energy choice, Marathon Oil (NYSE:MRO), for its higher multiple businesses, and believes upstream cash margins have room to move up as shale production increases and oil prices recover.
- Also added to the U.S. Focus List: JPMorgan Chase (NYSE:JPM), Dunkin' Brands (NASDAQ:DNKN).
- Earlier: Dunkin' Brands tapped by Credit Suisse for new highs
Thu, Apr. 9, 7:48 AM
- Legal and regulatory costs have weighed on the bank's stock price, says JPMorgan (NYSE:JPM) CEO Jamie Dimon in his annual letter to shareholders, but the cloud is lifting. While there's still some uncertainty over, for instance, the forex investigations, things should settle down by next year, he says.
- Dimon laments that he spends more time talking to analysts and investors about regulatory issues than he does about the business of banking.
- While praising the idea of the Fed stress tests, he notes the exams assume dramatic moves taking place all in one day, with very little recovery in values. The full bank plan -such as dramatic expense cuts and cuts in the dividend and buyback - isn't fully reflected in the Fed models. He also reminds, JPMorgan made a profit in each quarter throughout the financial crisis.
Wed, Apr. 8, 12:25 PM
- After racking up more than $36B in legal fines since the financial crisis, JPMorgan (JPM +0.5%) is rolling out a surveillance program designed to detect rogue employees before they go off the tracks.
- Dozens of inputs, including whether employees skip compliance classes, violate personal trading limits, or break market-risk limits, will be fed into the program, says Sally Dewar, head of regulatory affairs for Europe, who is leading the effort.
- The program is currently being tested in the trading business before being rolled out to the investment banking and asset management divisions by 2016. The bank has hired 2.5K compliance workers and spent more than $730M improving operations over the past three years, and job postings show it'll continue to be an area of growth.
- Source: Bloomberg
Tue, Apr. 7, 7:35 AM
Thu, Apr. 2, 3:24 AM
- JPMorgan (NYSE:JPM) is on track to meet its mandate to provide billions of dollars in consumer relief to struggling homeowners as part of a settlement it reached over shoddy mortgage bonds it sold before the financial crisis.
- Joseph Smith, the monitor overseeing the settlement, has so far credited Chase with $2.2B out of the $4B it is required to provide to consumers by 2017.
- Chase must also pay $9B in cash, totaling a $13B settlement.
Wed, Apr. 1, 4:33 PM
- Looking for some kind of growth wherever they can find it, banks are about to get their wish as Fair Isaac is set to launch a new credit scoring metric which should expand by tens of millions the field of those eligible to get credit.
- The new score will pull payment histories for things like utilities to calculate credit scores for consumers who might otherwise not have one. Other things - like how often someone changes address - will be used to help calculate a score.
- FICO and 10 unnamed credit card issuers have been testing the new score since November, and Fair Isaac intends to roll things out nationwide by year-end. Right now, about 15M of the 53M previously unscorable Americans can be scored using the new system.
- Source: WSJ
- Among those of interest: WFC, C, BAC, JPM, COF, DFS, AXP
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, FINZ, KRS
Mon, Mar. 30, 7:55 AM| Comment!
Mon, Mar. 30, 4:09 AM
- Top European and U.S. banks axed 59,000 jobs last year as they restructured, cut costs and moved further into digital banking, Reuters reports.
- The figure brings the total number of jobs lost across 24 banks in the last two years to 160,000.
- Notables: Barclays (NYSE:BCS) shed 7,300 jobs last year due to a three-year plan to cut 19,000 staff; RBS (NYSE:RBS) slashed 10,000 employees as it sold overseas businesses and trimmed its investment bank further; JPMorgan (NYSE:JPM) and BofA (NYSE:BAC) also made substantial job cuts as they worked through troubled mortgages and refinanced loans at lower rates.
Sat, Mar. 28, 4:33 PM
- Barron's notes shares of JPMorgan (NYSE:JPM) trade at just 10x earnings, one of the lowest P/E ratios among big U.S. banks.
- At just 12x 2016 estimated earnings, shares could approach $80 next year - a 30% gain, still a steep discount to the S&Ps 500's P/E ratio of 16x.
- The stock yields 3%, tops among its peers.
- Barron's says investors haven't yet recognized that JPM has built several market-leading companies, including the country's No. 1 credit-card company; the No. 1 investment bank; the top private bank; and the third-largest asset manager. CLSA analyst Mike Mayo, a onetime skeptic who turned bullish in late 2014, carries a Buy rating and $70 price target. "In addition to a discounted valuation, JPMorgan has adapted to the changing landscape, grown its market share, and reinvested back in the business," another analyst says.
- Previously: JPMorgan holds on to top investment banking spot, (Mar. 27)
- Previously: Gasparino: Sizable cuts coming at JPMorgan investment and commercial banks (Mar. 19)
- Previously: JPMorgan formally authorizes $6.4B buyback, boosted dividend next quarter (Mar. 17)
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