JP Morgan Chase (JPM) Swings to Third Quarter Profit

Shares of JP Morgan Chase & Co. (JPM) were down -0.26 or -0.45 percent to $57.90 per share in premarket trading on Tuesday, after the company announced early this morning its third quarter earnings had swung back to a profit. JP Morgan Chase stock closed at $58.16 per share, down -0.36 or -0.62 percent in Monday's regular trading session.

New York City based JP Morgan Chase & Co. is the largest bank by assets in the United States, and as of last year, the second largest bank by assets in the world.
With well over $2.5 trillion in assets, Forbes magazine ranks JP Morgan & Co. as the second largest public company in the world by composite ranking. The bank's main line of business is in investment banking and asset management, treasury and securities services and private wealth management.

JP Morgan Chase reported it had earned $5.57 billion or $1.36 per share in the third quarter compared with a loss of -$380 million in the same quarter one year ago. Last year's loss was in large part attributed to a $7.2 billion charge the company took in legal expenses.

Net revenue - revenue minus interest expense - came to $25.2 billion, up five percent from the same quarter last year. The analyst consensus was for the company to earn $1.38 per share, nevertheless, earnings were cut due to $1.1 billion or $0.26 per share in legal costs after taxes.

JP Morgan Chase's trading desk also saw a comeback, with fixed income trading operations increasing two percent to $3.5 billion. The trading desk also saw improvement in emerging markets and currency trading.

The earnings report was originally leaked through, an investment website, and subsequently reported by Reuters and others. The earnings statement was taken down from; however the figures had already been reported by a number of other websites. Earlier this month, JP Morgan Chase reported a cyberattack in the summer which compromised the accounts of seven million small businesses and 76 million households.

Jamie Dimon, Chief Executive and said in the company's press release that, "While challenges remain in the global economic recovery, the U.S. economy is an exception, showing signs of steady improvement. Corporate America is in good shape with strong balance sheets and employment trends continue to be positive. JPMorgan continued to support the economic recovery. We provided credit and raised capital1 of $1.6 trillion for our clients during the first nine months of 2014, which included $15 billion for U.S. small businesses.

He concluded saying, "Despite challenges, we have continued to deliver strong underlying performance, maintain our fortress balance sheet and liquidity, simplify the business and adapt to regulatory changes. We remain very focused on executing the control agenda and investing to protect our customers and the company for the future.

JP Morgan stock has traded in a limited range for most of the year, trading as low as $51.30 in late October of last year and making its yearly high of $61.85 just last month. News of its most recent earnings has had a tepid reception in this morning's premarket, nevertheless, the stock yields 2.7% from its $1.60 annual dividend at its current price.

Other News About JP Morgan Chase
JPMorgan Sets Aside Less for Investment Bank Pay on Slump
JPM set aside 3% less to pay employees at its investment bank in the first 9 months of 2014.
How Important Is Jamie Dimon to JPMorgan?
Bloomberg video presentation on the CEO's importance to the company.

Other Stocks in the News
Domino's posts better-than-expected earnings
Domestic sales rose +7.7 percent while international sales gained +7.1 percent in the quarter.
Costco makes first foray into China via Alibaba
Costco launches its first online store in China through Alibaba.

Published on Oct 14, 2014
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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