Wed, Jan. 14, 7:22 AM
- Q4 included a $990M after-tax legal expense; backing that out, headline EPS would have been $1.54 vs. $1.19 reported and estimates for $1.31.
- Q4 Consumer & Community Banking net income of $2.179B vs. $2.448B a year ago on revenue of $10.949B vs. $11.439B. Net interest income of $7.1B down marginally from a year ago. Provision for credit losses of $950M vs. just $72M a year ago. Noninterest expense of $6.411B vs. $7.321B thanks to continued job cuts in mortgage banking. Mortgage banking net income of $338M down from $593M a year ago.
- Corporate & Investment Bank - excluding DVA adjustments - net income of $1.1B vs. $2.2B a year ago on revenue of $7.6B vs. $8.2B. Investment banking fees of $1.8B up 8% Y/Y. Fixed income markets revenue of $2.5B down 23% - excluding business simplification, including the sale of certain operations, fixed income markets revenue fell 14%. Noninterest expense of $5.6B up 14% Y/Y thanks in part to higher legal expense.
- Commercial Banking net income of $693M vs. $711M a year ago on revenue of $1.770B vs. $1.876B.
- Asset Management net income of $540M vs. $581M a year ago on revenue of $3.2B, flat from last year.
- Conference call at 8:30 ET
- Previously: JPMorgan Chase EPS of $1.19 (Jan. 14)
- JPM -2.3% premarket
Wed, Jan. 14, 7:00 AM
Tue, Jan. 13, 5:30 PM
Tue, Jan. 13, 3:21 PM
- 2015 has opened much like 2014, with interest rates doing the exact opposite of what most expected, and falling sharply. It's a tough start for bank investors who have been counting on higher interest rates to help boost earnings for a number of years.
- In the meantime, deposits keep rolling in, and the pace of lending growth isn't quick enough to absorb all the money. In 2014, loan balances rose 4.4%, but securities holdings popped 12%, and cash assets jumped 22%.
- The good part of falling yields are unrealized gains on those security portfolios - negative a year ago, they're were in the green by about $15B on Dec. 31. More good news, says Goldman's Richard Ramsden: Valuations. The big banks are priced at about 9.9x estimated 2016 earnings, allowing for some nice upside if and when rates do decide to go higher.
- Reporting Q4 results tomorrow are JPMorgan (JPM) and Wells Fargo (WFC -0.8%), and on Thursday are Bank of America (BAC -1.4%) and Citigroup (C -0.9%).
Fri, Jan. 9, 12:24 PM
- The Diversified Return Emerging Markets Equity ETF (NYSEARCA:JPEM) seeks to provide investors with enhanced risk-adjusted returns and to help financial advisors keep clients invested in equities over the long term.
- "We believe that J.P. Morgan (NYSE:JPM) has emerging markets capabilities and investment insights that will be attractive to investors, and this product is an important additional step in delivering those capabilities, with an eye toward better risk-adjusted returns," said Robert Deutsch, Global Head of ETFs for J.P. Morgan Asset Management in a press release.
- The FTSE Emerging Diversified Factor Index will be employed in this fund, featuring a unique risk framework to distribute risk across regions and sectors and a multi-factor stock filter to rank and select stocks based on value, quality and momentum.
- The SPDR MSCI Emerging Markets Quality Mix ETF (NYSEARCA:QEMM) will likely be the most direct competitor for this new ETF.
Wed, Jan. 7, 7:33 AM
- SolarCity (NASDAQ:SCTY) is partnering with JPMorgan (NYSE:JPM) to finance more than $350M in solar power projects with a new investment fund.
- The fund is the second created by the two companies, and a follow-up to a fund created in 2013 to finance approximately $170M projects.
- JPM +0.9% premarket
- Previously: SolarCity, BofA partner on solar financing program (Dec. 11 2014)
Mon, Jan. 5, 4:10 PM
- The bank has agreed to pay about $100M in lawsuits brought by counterparties, market participants, and others who claim damage by supposed efforts to rig the foreign exchange markets, reports the FT.
- Revealed in court filings today and still requiring court approval, the settlement shows JPMorgan's (JPM -3.1%) desire to lay the manner to rest, say the FT's sources. Eleven other banks are also defendants in the suit. Together, the twelve had asked for dismissal in May, and the court has yet to rule on it.
- JPMorgan has already paid $660M to settle global probes of forex markets and still faces investigations by the DOJ and New York's Department of Financial Services.
Mon, Jan. 5, 1:25 PM
- "We view Wells Fargo (WFC -2.7%) as a core bank holding, but shares have reached our price target and we believe sentiment is now overwhelmingly positive after leading returns in 2014 (+21%, #1 among the top 50 banks)," says Baird's David George, who earlier downgraded the stock from Outperform to Neutral.
- Put the money in another bank? Not so quick, says George, suggesting the Fed could tighten later and be less aggressive than most expect, disappointing those hoping for higher rates to boost profits. Other than Wells Fargo, George sees sentiment highest in PNC Financial (PNC -2.7%), SunTrust (STI -3.9%), and U.S. Bancorp (USB -2.2%).
- Asset-sensitive names like Comerica (CMA -3.7%) and Zions (ZION -3.4%) lagged in 2014, but estimates still look to high.
- Top ideas would be Fifth Third (FITB -2.7%), Capital One (COF -2.4%), and JPMorgan (JPM -3%), but George is having a tough time finding value in the sector.
- Previously: Longtime Wells Fargo bull rings the register (Jan. 5)
Mon, Jan. 5, 1:03 PM
- An improving economy and easing of the regulatory burden will be keys for a big move higher in the big banks this year, says Barclays' Jason Goldberg, seeing double-digit percentage gains for the Citigroup (C -2.9%), Bank of America (BAC -3%), JPMorgan (JPM -2.8%), and Wells Fargo (WFC -2.6%).
- His top pick among the group is Citigroup, where the $65 price target suggests upside of more than 20%.
- Goldman has a different take, and sees the regulatory burden as making JPMorgan worth more broken up than together.
Mon, Jan. 5, 10:58 AM
- With size now clearly a "regulatory negative," the debate over whether breaking up JPMorgan (JPM -2.3%) could unlock shareholder value needs to take place, says the team at Goldman Sachs. Goldman's Richard Ramsden figures JPMorgan sells at a 20% "conglomerate discount" to pure-play financial companies.
- Ramsden believes the bank could be broken up into either two or four parts, waving aside the idea of "minor surgery" as resulting in only modest capital relief.
Dec. 25, 2014, 6:33 AM
- JPMorgan's (NYSE:JPM) Asian Infrastructure fund is in advanced talks to partner with Indian carrier SpiceJet's co-founder, Ajay Singh, for a planned $200M investment into the cash-strapped airline.
- JPMorgan and Singh, who have so far invested about 170M rupees in SpiceJet to help it clear dues to oil refiners, plan to finalize the deal in a month’s time.
Dec. 17, 2014, 7:36 AM
- Jefferies yesterday posted a 73% plunge in fixed-income trading revenue for the quarter ended Nov. 30, and a 45% fall in equity-trading revenue. “You’re going to see weaker trading results because of what I’d call bad volatility,” says Charles Peabody, as firms cut back on stock and bond offerings.
- That Q4 trading revenue is going to be a weak one for the likes of JPM, C, BAC, GS, and MS shouldn't be a major surprise as Ciit's Mike Corbat, BofA's Brian Moynihan, and JPM's Marianne Lake said as much when presenting at a financial services conference earlier this month. But the weakness they described is nowhere near what was reported at Jefferies.
- Alongside the weak trading results, Jefferies is also looking to get rid of Bache - its commodities-trading business. "The fact that they are throwing in the towel on this business just a few years in would suggest that maybe that opportunity is not nearly as robust as they thought it would be,” says UBS's Brennan Hawken.
- Previously: Jefferies posts loss, mulling sale of Bache unit (Dec. 16, 2014)
Dec. 16, 2014, 12:14 PM
- Under its $13B 2013 mortgage settlement, JPMorgan (JPM +0.6%) was to provide $4B in consumer aid, and the bank has told the settlement monitor it has completed about $2.25B of that. The monitor, Joseph Smith, says his office needs to validate the calculations before giving JPMorgan credit.
- Thus far, the bank has been credited $862M for aid to more than 46K borrowers. More than 60% of that has gone to new lending, including to those areas hit hardest by the real estate bust, and loans to low-income borrowers. The remaining 40% was for loan forgiveness and forbearance.
Dec. 15, 2014, 4:37 PM| Comment!
Dec. 10, 2014, 11:12 AM
- Speaking at the Goldman Sachs financial services conference, JPMorgan (JPM -1.8%) CFO Marianne Lake sees FICC revenue lower by a "high teens" percentage in Q4.
- 2015 is shaping up to be "respectable," but will bear more resemblance to 2014 than the bank would like, she adds.
- Addressing the latest chatter about boosted capital requirements, Lake says it's "reasonable" to assume capital ratios for the largest banks will go to a total of 11.5% - the 7% common equity requirement necessary for most banks, plus the 4.5% boost for the big lenders.
- At the same conference yesterday:
- Previously: Banks slip as Moynihan warns on trading activity (Dec. 9, 2014)
- Previously: Citigroup taking nearly another $3B in legal charges (Dec. 9, 2014)
Dec. 10, 2014, 3:42 AM
- It has been revealed that JPMorgan (NYSE:JPM) has a $22B capital hole under newly proposed Fed rules, FT reports
- Officials had not intended to release the fact, but rather announced that there was an aggregate shortfall of $21B between eight major banks. However, during an exchange with vice-chairman Stanley Fischer at a recent Fed meeting, it emerged that JPMorgan accounted for the entire deficit.
- The bank will have until 2019 to reach the new buffer.
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