本文发表在 rolia.net 枫下论坛J.P. Morgan Profit Surges, but Loan Losses Stay High
By MATTHIAS RIEKER and JOAN E. SOLSMAN
NEW YORK -- J.P. Morgan Chase & Co. said its third-quarter earnings soared as strong investment-banking results outweighed another sizable provision for loan losses.
The $2 billion the bank set aside to cover current and future losses from consumer loans reflects the bank's tradition of protecting its balance sheet even as many bankers see a slowdown in the rate delinquencies are increasing.
Chairman and Chief Executive Jamie Dimon said the cost of covering delinquencies and loan losses will remain elevated "for the foreseeable future" in its consumer and credit-card operations.
So despite the strong profit, the quarter doesn't reflect a turnaround yet, but rather stabilization. It is the first time since J.P. Morgan Chase bought the collapsing Washington Mutual Inc. in September last year that assets and deposits didn't shrink. Loan balances continued to shrink as the recession took its toll, but lending became more profitable.
Mr. Dimon also said the quarter's strong results reflect "broad-based growth" in several lines of businesses. Revenue in all but one of J.P. Morgan Chase's six lines of businesses improved from the second quarter, though net income was mixed because the bank set aside more money to cover delinquent loans.
Shares rose 3.4% premarket to $47.22. Through Tuesday, the stock was up 45% so far this year.
J.P. Morgan, the first of the major banks to report results, said it saw broad earnings growth across commercial and retail banking as well during the quarter. Overall, banks are expected to post falling earnings in the most-recent period.
J.P. Morgan posted a profit of $3.59 billion, or 82 cents a share, from $527 million, or 9 cents a share, a year earlier. The previous year's results included more than $4 billion in write-downs and losses from taking over Washington Mutual.
Revenue increased 81% to $26.62 billion.
A survey of analysts by Thomson Reuters predicted a profit of 52 cents a share on $24.96 billion in revenue.
Tier 1 capital ratio, a key measure of financial strength, was 10.2%, up from 8.9% a year earlier and 9.7% in the prior quarter.
In investment banking, revenue rose 85% while the segment's profit more than doubled.
Managed credit-loss provisions were $9.8 billion, up $3.1 billion from a year earlier and up $100 million from the previous quarter. The net charge-off rate in J.P. Morgan's consumer business surged to 6.29% from 3.39%.
Write to Matthias Rieker at matthias.rieker@dowjones.com and Joan E. Solsman at joan.solsman@dowjones.com更多精彩文章及讨论，请光临枫下论坛 rolia.net
By MATTHIAS RIEKER and JOAN E. SOLSMAN
NEW YORK -- J.P. Morgan Chase & Co. said its third-quarter earnings soared as strong investment-banking results outweighed another sizable provision for loan losses.
The $2 billion the bank set aside to cover current and future losses from consumer loans reflects the bank's tradition of protecting its balance sheet even as many bankers see a slowdown in the rate delinquencies are increasing.
Chairman and Chief Executive Jamie Dimon said the cost of covering delinquencies and loan losses will remain elevated "for the foreseeable future" in its consumer and credit-card operations.
So despite the strong profit, the quarter doesn't reflect a turnaround yet, but rather stabilization. It is the first time since J.P. Morgan Chase bought the collapsing Washington Mutual Inc. in September last year that assets and deposits didn't shrink. Loan balances continued to shrink as the recession took its toll, but lending became more profitable.
Mr. Dimon also said the quarter's strong results reflect "broad-based growth" in several lines of businesses. Revenue in all but one of J.P. Morgan Chase's six lines of businesses improved from the second quarter, though net income was mixed because the bank set aside more money to cover delinquent loans.
Shares rose 3.4% premarket to $47.22. Through Tuesday, the stock was up 45% so far this year.
J.P. Morgan, the first of the major banks to report results, said it saw broad earnings growth across commercial and retail banking as well during the quarter. Overall, banks are expected to post falling earnings in the most-recent period.
J.P. Morgan posted a profit of $3.59 billion, or 82 cents a share, from $527 million, or 9 cents a share, a year earlier. The previous year's results included more than $4 billion in write-downs and losses from taking over Washington Mutual.
Revenue increased 81% to $26.62 billion.
A survey of analysts by Thomson Reuters predicted a profit of 52 cents a share on $24.96 billion in revenue.
Tier 1 capital ratio, a key measure of financial strength, was 10.2%, up from 8.9% a year earlier and 9.7% in the prior quarter.
In investment banking, revenue rose 85% while the segment's profit more than doubled.
Managed credit-loss provisions were $9.8 billion, up $3.1 billion from a year earlier and up $100 million from the previous quarter. The net charge-off rate in J.P. Morgan's consumer business surged to 6.29% from 3.39%.
Write to Matthias Rieker at matthias.rieker@dowjones.com and Joan E. Solsman at joan.solsman@dowjones.com更多精彩文章及讨论，请光临枫下论坛 rolia.net