From other sites
at Zacks.com (Fri, 4:57PM)
at CNBC.com (Fri, 4:35PM)
Bank Stock Roundup: Fines, Legal Issues Rule Headlines; Citi, BofA & JPMorgan in Focus - Analyst Blogat Zacks.com (Fri, 2:47PM)
at Zacks.com (Fri, 11:30AM)
at CNBC.com (Thu, 7:00PM)
at CNBC.com (Thu, 6:54PM)
at Zacks.com (Thu, 6:46PM)
at CNBC.com (Thu, 4:44PM)
at CNBC.com (Thu, 2:50PM)
at CNBC.com (Thu, 12:43PM)
- JPM has performed very strongly since recovering from the London Whale incident.
- Considering the headwinds to JPM's business it is incredibly impressive the bank has continued to deliver growth.
- I think JPM is worth $66 right now.
JPMorgan And Goldman Sach's Investment Banking Divisions Are Poised For SuccessLester Goh • Tue, Dec. 16
- Investments banks have been experienced rapid growth within their underwriting and advisory divisions in past years.
- Some have questioned whether this growth is sustainable going forward.
- Looking at key industry drivers, I explain why there is still growth to be realized, and why Goldman and JPMorgan are poised to capitalize on it.
- Low interest rates, high corporate cash balances, corporate confidence, record-high M&A volumes and skyrocketing market valuations will continue to drive the industry further.
Is JPMorgan The Biggest Loser From The Fed's Capital Surcharge Proposal?
- The Fed provided further details regarding their proposal to implement additional capital surcharges for the largest US banks.
- As widely expected, the focus of the proposed surcharge is the perceived reliance of large banks on short-term wholesale funding.
- JPMorgan was singled out in the Fed discussion as the only bank with an estimated capital 'hole' of $22 billion.
- What is so unique about JPMorgan, such that it is the only bank with a capital shortfall?
- The stock appears to be inexpensively valued based on 2015 earnings estimates.
- The dividend is decent and has a lot of room to grow with respect to trailing earnings.
- On a technical basis the stock appears to be exhibiting bullish trends.
ModernGraham Quarterly Valuation Of JPMorgan Chase
- JPM is suitable for both the Defensive Investor and the Enterprising Investor following the ModernGraham approach.
- According to the ModernGraham valuation model, the company is significantly undervalued at the present time.
- The market is implying 2.01% earnings growth over the next 7-10 years, which is significantly less than the rate the company has seen in recent years.
Best S&P 500 Dividend Stocks According To Graham Principles: JPMorgan Chase
- Ranking the top twenty S&P 500 dividend stocks, according to Graham principles.
- Explanation and back-testing of the "All-Stars: Graham" ranking system.
- Description and a buy recommendation for the first-ranked stock of the system: JPMorgan Chase.
JPMorgan Deteriorating: Hold, But Have Finger On The Sell Button
- Earnings quality is not great.
- However, rays of light exist in several divisions and the balance sheet.
- Time will tell if momentum returns, so for now, hold.
Probing Further Into JPMorgan: Strong Results Dampened By Federal Investigation
- JPMorgan is facing a new probe into price-fixing activities in its foreign exchange trading business.
- As a result, JPMorgan upped its potential costs for legal expenses by $1.3 billion and reduced Q3 earnings results.
- Overall, recent results were positive, showing a shift back to profitability.
- We are encouraged by this growth; however, suggest investors also consider peers, such as GS, who are taking to increase transparency and accountability, as well.
- JPM shares have underperformed for the past year, but results are strong, meaning investors can buy a great company at a good price.
- The consumer bank is posting moderate loan growth, the investment bank has top market share, and asset management is growing revenue and expanding margins.
- Shares are now slightly below book value and less than 10x earnings, making now an attractive entry point.
- Throughout 2014 the stock has experienced some really bad news and it is still flat during the past year.
- The dividend has a lot of room to grow with a current payout of just 30%.
- If interest rates begin to rise next year as anticipated, we can see a rise in the share price of the stock.
JPMorgan's Swelling Legal Provisions Did Not Undermine Strong Q3 Performance
- JPMorgan had to spend $1 billion on legal expenses due to forex market rigging investigation but the company still managed to convert its losses over the previous year into profits.
- The company achieved this by playing to its strengths and generating revenue from investment banking, fixed income markets, deposits and credit card sales.
- JPMorgan took pride in its cost cutting measures as it sought to automate to save costs. The company is currently facing competition from tech giant Apple.
- JPMorgan has stood tall over the years and has repaid investors’ faith, does make a worthy investment prospect, if not for the short term then definitely for the long term.
JPMorgan Q3 2014 Earnings: As In-Line As It Can GetWestEnd511 • Wed, Oct. 15
- Headline EPS missed consensus but adj EPS actually came in-line.
- In-line revenue thanks to IB and better than expected loan growth.
- Continue to favor TD and BAC due to lower wholesale exposure and earnings recovery story.
Update: JPMorgan Earnings Miss EPS By $0.03, But Beat Revenues By 2.0%
- JPM missed increased earnings forecasts, but reported progress in core loans, auto origination and investment banking.
- EPS reflects continued improvement and was in-line to slightly positive compared to my forecast.
- Maintain a "Buy" on JPM, especially as 2015 and 2016 earnings forecasts continue to increase.
Whisper Number Impact: What Will JPMorgan's Shares Do Post Earnings?
- The whisper number is $1.37, one cent behind the analysts' estimate.
- JPMorgan has a 74% positive surprise history (having topped the whisper in 37 of the 50 earnings reports for which we have data).
- The overall average post earnings price move is 'opposite' (beat the whisper number and see weakness, miss and see strength) when the company reports earnings.
- JPMorgan Chase is scheduled to report 3Q 2014 earnings before the bell on Tuesday, October 14th.
- Earnings Per Share: The current Street estimate is $1.38 per share (range: $1.30 to $1.50).
- Revenues: The current Street estimate is $23.99 billion, a 0.50% increase from the year-ago period.
JPMorgan Sells Health Savings Account Business To Webster Financial - A Win For BothStock Gazer • Wed, Oct. 1
- WBS and JPM came to an agreement about the purchase and sale of HSA. The deal involves the sale of almost 700,000 accounts to Webster Financial’s HSA Bank division.
- JPMorgan had announced plans of streamlining its business and intended to achieve that goal by selling some of its non-core business units which included the prepaid card business.
- JPMorgan does not expect any adverse effects on its earnings. The company does not anticipate any changes to the revenues and profits it earns because of this deal.
High-Yielding JPMorgan Appears To Be Overbought At These Levels
- The stock is inexpensively valued on 2015 earnings estimates, and the estimates have increased in the past month.
- The stock has had a nice price increase over the past couple of months though, getting it to overbought territory.
- I'm going to wait another month before putting more capital to work in the name.
JPMorgan: A Solid Value In This Fully Valued Market
- It is getting harder to find bargains in the market with the S&P 500 hovering at the 2,000 level and with stocks going for 16-17 this year's earnings.
- I am lightening my exposure to REITs and increasing my allocation to major banks as net interest margins should benefit as interest rates look to rise from here.
- One major bank that is offering solid value in a fully valued market is JPMorgan. Why I expect the shares to rise 12% to 15% is highlighted below.
Wed, Dec. 10, 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)
Tue, Dec. 9, 8:52 AM
- A check of the other major banks premarket amid a global selloff of some note and BofA's Brian Moynihan's warning about sluggish Q4 trading revenue finds JPMorgan (NYSE:JPM) -1.5%, Citigroup (NYSE:C) -1.5%, Wells Fargo (NYSE:WFC) -1.2%, Goldman Sachs (NYSE:GS) -1.7%, and Morgan Stanley (NYSE:MS) -1.5%.
- XLF -1.1%
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
Fri, Dec. 5, 10:06 AM
- Among those counting on higher interest rates to boost profits are banks, insurers, and online brokers, and all are outliers to the upside in today's session after a strong November jobs report has rate hike expectations on the rise. The XLF is up 1%.
- TBTFs: Bank of America (BAC +2.1%), Citigroup (C +1.8%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.2%)
- Regionals (KRE +1.9%): Regions Financial (RF +2.6%), KeyCorp (KEY +2.3%), Huntington (HBAN +1.5%), BB&T (BBT +1.6%), Zions (ZION +4%)
- Custodials: BNY Mellon (BNY), State Street (STT +1.6%), Northern Trust (NTRS +1.8%)
- Life insurers: MetLife (MET +2.1%), Prudential (PRU +2.5%), Lincoln National (LNC +2.3%)
- Online brokers: Schwab (SCHW +3.8%), E*Trade (ETFC +3%), Ameritrade (AMTD +2.7%)
- Previously: Short end of yield curve on the move after jobs number (Dec. 5, 2014)
- Previously: Bonds and dollar higher, gold slumps after strong jobs report (Dec. 5, 2014)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
Tue, Oct. 14, 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
Thu, Oct. 2, 7:28 AM
- Bank of America (NYSE:BAC) is boosted to a Buy with price target raised to $20 from $16.80, while JPMorgan (NYSE:JPM) is cut to a Neutral with $64 price target.
- BofA's deposit profile means it will be under less pressure than peers to pass along Fed rate boosts to depositors, says UBS. JPMorgan, on the other hand, has a smaller amount of "core deposits" than its peers, says UBS, and could see outflows when rates rise.
- BAC +1%, JPM -1% premarket
Thu, Sep. 25, 3:09 PM
- Today's resignation of Attorney General Eric Holder could mark the beginning of the end of the Justice Department’s push to hold big banks accountable for their conduct leading up to the financial crisis.
- Several big banks, including Goldman Sachs (GS -2.1%) and Wells Fargo (WFC -1.1%), are still under investigations by the Justice Department for their sale of flawed mortgage securities before 2008, but settlements in those cases are expected to be much smaller than the big sums extracted from Bank of America (BAC -1.8%), JPMorgan Chase (JPM -2%) and Citigroup (C -2.2%).
- Another sign that the big bank cases may be winding down: Tony West, who was Holder’s point man in the bank settlement talks, recently left the Justice Department to join PepsiCo as its general counsel.
Wed, Sep. 17, 3:16 PM
- Leading markets higher as the reality of higher interest rates gets nearer is the financial sector (XLF +0.9%). Whether its banks, brokerages, or insurers, a higher benchmark rate for some time has been considered a key bullish catalyst. An especially large move is being seen in the online brokerage names who have been forced to forego money market fees for years thanks to ZIRP: E*Trade (ETFC +3%), Schwab(SCHW +3.2%), Ameritrade (AMTD +2%).
- Morgan Stanley (MS +1.8%), Bank of America (BAC +1.2%), JPMorgan (JPM +0.9%)
- U.S. Bancorp (USB +1.1%), Regions Financial (RF +2%), New York Community Bank (NYCB +0.8%), Huntington Bancshares (HBAN +1.3%), KeyCorp (KEY +1.3%)
- MetLife (MET +0.6%), Voya Financial (VOYA +0.7%).
- Chubb(CB +0.4%), AIG (AIG +1.1%), Hartford (HIG +0.8%)
- Financial sector ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, KBWB, FNCL, RKH, QABA, FINU, KRU, KBWR, RWW, KBWP, RYF, KBWI, KRS, FINZ
Tue, Sep. 9, 12:24 PM
- The Fed intends to impose a capital surcharge on banks tougher than the international standard, according to Fed Governor Daniel Tarullo's prepared remarks for the Senate Banking Committee. Those banks with heavier reliance on short-term funding like overnight loans - i.e. Goldman Sachs (GS -1%) and Morgan Stanley (MS -1.8%) - will likely face even more rigorous requirements.
- Officials haven't yet decided on a number, but reportedly are considering as much as 200 basis points more than the top range of 2.5% of risk-weighted assets agreed to by international regulators.
- What's not yet clear is who would need to raise capital to meet the new, tougher standard.
- Citigroup (C -1%), Bank of America (BAC -0.6%), JPMorgan (JPM -1.3%), Wells Fargo (WFC -0.4%), State Street (STT -1.1%), Bank of New York Mellon (BK -0.9%)
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
Tue, Jul. 15, 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
Wed, Jul. 2, 11:50 AM
- "For the board to put the company in a position where there isn't a defined leader or replacement if Jamie Dimon were unable to function would be unacceptable," says Dick Bove, arguing it behooves JPMorgan (JPM -1.2%) to split the chairman and CEO roles, given Dimon's medical condition.
- JPMorgan spokesperson Joseph Evangelisti says the board has in place a short-term, medium-term, and long-term succession plan for Dimon.
- Were the bank to split the roles, says Bove, the board would likely pick from its current set of independent directors, and a member of the audit committee could be in the best shape to become chairman. Among those is audit committee chair Laban Jackson, a longtime Banc One director who came to JPMorgan alongside Jamie Dimon in 2004.
- Previously: Dimon says he has curable throat cancer
Thu, May. 8, 10:44 AM
- Plans to gut its investment bank (7K job cuts), park £400B of assets in a "bad bank", and cut another 12K positions from the rest of the company light a fire under Barclays (BCS +7.8%). The lender's current workforce is 139.6K strong, and the 19K in cuts announced today stands against a plan of just 12K expected earlier this year.
- Barclays' reshaped investment bank will concentrate on the core markets of the U.S. and the U.K., and the top 1K clients who generated more than 75% of revenues last year. The investment bank will now account for 30% or less of risk-weighted assets, down from 50% now.
- Talking a different line than JPMorgan's (JPM +0.4%) Jamie Dimon, Barclays boss Antony Jenkins says the evaporation of trading revenue is indeed secular, not cyclical.
- Previously: Cyclical or secular? JPMorgan warns again on trading business
- Previously: Barclays plans to axe 19,000 jobs
Mon, May. 5, 10:20 AM
- A check of the global banks finds the group pacing market declines in morning action after Friday night's warning on Q2 trading revenue from JPMorgan (JPM -2.2%).
- Nomura's Steven Chubak is first out with lower JPMorgan earnings estimates.
- Jim Cramer sums up sentiment: "This has been a house of pain. You can't own these right now. You just can't."
- Morgan Stanley (MS -1.9%), Goldman Sachs (GS -1.5%), Citigroup (C -1.2%), and Bank of America (BAC -1%), Deutsche Bank (DB -1.2%). Far less trading dependent than the other Too Big Too Fails is Wells Fargo (WFC -0.2%).
- The iShares DJ U.S. Broker-Dealer ETF (IAI -1.2%)
- XLF -0.7%, KBE -0.8%
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, PFI, FXO, FNCL, KBWB, FINU, KCE, RWW, RYF, PSCF, FINZ, KBWC
Fri, Apr. 11, 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
Fri, Apr. 11, 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
Thu, Mar. 20, 10:54 AM
- Much of the financial sector is lit up bright green, continuing to outperform following yesterday's suggestion by the FOMC and Janet Yellen that rate hikes could come sooner than expected. XLF +1.1%, KBE +1.6%, KRE +1.6%.
- At new 52-week or even multi-year highs are JPMorgan (JPM +2.3%), Wells Fargo (WFC +1.7%), Morgan Stanley (MS +1.4%), and Bank of America (BAC +1.6%).
- Regional lenders: U.S. Bancorp (USB +1%), Huntington (HBAN +1.5%), PNC (PNC +1.3%), BB&T (BBT +1.5%), Fifth Third (FITB +1.8%), First Niagara (FNFG +2.1%).
- Leading among the life insurers are Lincoln National (LNC +1.9%), Protective Life (PL +1.6%), Manulife (MFC +1.2%), and Sun Life (SLF +1.1%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, SEF, IYG, IAK, FXO, PFI, KBWB, RKH, QABA, FNCL, FINU, KRU, RWW, KBWR, RYF, PSCF, KBWI, KBWP, KRS, FINZ
Wed, Mar. 19, 3:13 PM
- A check of sectors following the FOMC statement and updated projections suggesting a quickened pace of rate hikes in the future finds the banks and life insurers notably moving higher. Both groups have struggled earning a spread amid ZIRP and are positively levered to higher rates.
- Lenders: Bank of America (BAC +1%), Citigroup (C +1%), JPMorgan (JPM), Regions (RF +1.7%), KeyCorp (KEY +0.9%), SunTrust (STI +0.7%).
- Life insurers: MetLife (MET +1%), Prudential (PRU +0.7%), Lincoln National (LNC +1%).
- Related ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, KIE, SEF, IYG, IAK, FXO, PFI, KBWB, FNCL, FINU, RWW, RYF, PSCF, KBWP, KBWI, FINZ, KBE, KRE
- Not necessarily positively levered to higher rates are the mortgage REITs (REM -1.6%): Annaly (NLY -1.8%), American Capital (AGNC -1.7%), (MTGE -1.9%), Armour (ARR -1.3%), Two Harbors (TWO -2%) CYS Investments (CYS -3.3%), Capstead (CMO -1.3%), MFA (MFA -1.8%).
- Related ETFs: MORT, MORL
JPM vs. ETF Alternatives
Other News & PR