Tue, Feb. 24, 3:50 PM
- No Goldman analyst is going to force JPMorgan (JPM +2.7%) out of investment banking, says Jamie Dimon, wrapping up his bank's investor day. Dimon is referring to a report from Goldman Sachs earlier this year which suggested JPMorgan is trading at a 20% "conglomerate discount," a spread which could be narrowed by breaking the bank up into two or four parts.
- JPMorgan's management's unwavering view that bigger is better has been a recurring theme throughout today's presentations. JPMorgan may be big, says Dimon, but it's no conglomerate.
- Dimon does however acknowledge the regulatory headwinds to getting bigger, and any growth will surely be organic.
- "P/E ratio has always been wrong, just like the cost of equity has always been wrong, and the market is always wrong," says Dimon, not too worried about his bank's supposed premium valuation compared to the other TBTFs.
- "I know it's only 3:30, but you are welcome to start drinking," he says in conclusion.
- Investor day webcast and presentations
Tue, Feb. 24, 12:55 PM
- JPMorgan's (JPM +2.6%) corporate & Investment bank is set to post year-over-year gains in trading revenue, says unit CEO Daniel Pinto, presenting at the bank's investor day.
- Webcast and presentations
- The forecast is particularly notable because investment bankers for nearly the last year have been using such stages to lower expectations for FICC revenue. Either things are getting better or banks now are beginning to go up against really easy comparisons.
- Earlier this month, Goldman CEO Lloyd Blankfein expressed similar optimism about his bank's Q1 results.
- Previously: JPMorgan investor day: Bigger is better (Feb. 24)
Tue, Feb. 24, 11:41 AM
- "Scale has always defined the winner in banking," says CFO Marianne Lake, who spent a sizable portion of her presentation time explaining why JPMorgan (JPM +2.5%) should not be broken up. The bank, she says, generates $18B per year in synergies as one unit - $15B from added revenues from sales across different units, and $3B in cost savings.
- Investor day webcast and presentations
- Of course, this doesn't preclude the Bank of Dimon from shrinking some of its businesses in order to ease capital requirements, with case-in-point today's announcement to reduce certain institutional deposits by up to $100B by year-end. The move comes as perverse new federal rules basically penalize banks for holding excess deposits over worry about their quick exit during another financial crisis.
- Investors are liking the news, bidding up JPMorgan today more than any of the other TBTF banks.
- Previously: JPMorgan to announce deposit fees for big clients (Feb. 24)
Wed, Feb. 18, 2:49 PM
- The financial sector had begun to turn around a dismal start to the year as February brought forth a string of hawkish Fed heads suggesting a June rate hike, but the XLF is lower by 0.8% after just-released FOMC minutes suggest markets and the hawks are getting ahead of themselves. KBE -1.7%, KRE -2%
- The TBTFs: BofA (BAC -2.2%), JPMorgan (JPM -1.4%), Wells Fargo (WFC -1.6%), Ciitgroup (C -0.8%)
- The regionals: Regions Financial (RF -1.6%), KeyCorp (KEY -1.6%), PNC Financial (PNC -1.3%), BB&T (BBT -1.5%), Fifth Third (FITB -1.6%), SunTrust (STI -1.7%), First Niagara (FNFG -2.1%), M&T (MTB -1.9%), U.S. Bancorp (USB -1.3%), First Horizon (FHN -2.7%).
- Online brokerage: Schwab (SCHW -2.3%), E*Trade (ETFC -1.7%), Ameritrade (AMTD -1.1%), Interactive Brokers (IBKR -0.9%).
- Previously: FOMC minutes: June rate hike not a slam dunk yet (Feb. 18)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWC, FINZ, KRS
Fri, Feb. 6, 9:50 AM
- Financials have been mercilessly pounded in 2015 as hopes for higher interest rates looked like they might be dashed yet again, but today's blowout jobs number - firmly putting a June rate hike on the table - has brought in the dip-buyers.
- The major averages are flat, but the XLF is up 1.4%. The Regional Bank ETF (KRE +2%) and the Bank ETF (KBE +2.1%) are doing even better.
- Among the yield-starved banking names: Bank of America (BAC +3.1%), JPMorgan (JPM +2.6%), Citigroup (C +2%), Regions Financial (RF +4%), KeyCorp (KEY +3%), PNC Financial (PNC +2.9%), SunTrust (STI +2.3%), Zions (ZION +3.6%), Synovus (SNV +2.3%).
- Insurers: MetLife (MET +2%), Prudential (PRU +3.2%), Lincoln National (LNC +4.6%). AIG (AIG +1.5%).
- Trust banks: BNY Mellon (BK +2.7%) State Street (STT +1.9%), Northern Trust (NTRS +2.3%).
- Online brokers (currently getting killed on money-market fee rebates): Schwab (SCHW +4.5%), TD Ameritrade (AMTD +3.5%), E*Trade (ETFC +2.1%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
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
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. 9, 2014, 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
Dec. 5, 2014, 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
Oct. 14, 2014, 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
Oct. 2, 2014, 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
Sep. 25, 2014, 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.
Sep. 17, 2014, 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
Sep. 9, 2014, 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
Jul. 15, 2014, 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
Jul. 2, 2014, 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
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