This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

JPMorgan Beats Estimates, but Pressure Mounts (Update 3)

JPMorgan earnings updated with more detail on specific business earnings and management commentary.

  • JPMorgan Chase reported a profit of $4.26 billion, or $1.02 per share.
  • Revenues was flat at $24.36 billion.
  • Analysts expected an EPS of 91 cents per share on revenues of $23.39 billion

NEW YORK ( TheStreet) -- JPMorgan Chase (JPM - Get Report) delivered a mixed third-quarter earnings report Thursday, reporting solid loan growth but a decline in core profitability amid a challenging investment banking and capital markets environment.

The second largest bank by assets kicked off the sector's earnings season, reporting a net income of $4.26 billion or $1.02 per share on a managed basis compared to a year-ago net income of $4.42 billion or $1.02 per share and a second quarter net income of $5.43 billion or $1.23 per share.

Revenues came in at $24.36 billion, a 11% decline from the second quarter revenue of $27.41 billion but little changed from $24.33 billion reported during the third quarter of 2010.

Analysts had expected JPMorgan to report an earnings per share of 91 cents on revenues of $23.39 billion, according to consensus estimates from Thomson Reuters.

Still, the initial reaction to the earnings was lukewarm, given the quality of the beat. The bank reported accounting gain of $1.9 billion, or 29 cents per share, from the decline in the value of its own debt, which helped offset a $542 million pre-tax loss from its private equity business and an additional $1 billion in pre-tax litigation expenses.

Pre-provision profit, a measure of a bank's profitability, fell 11% year-on-year and declined by 16% on a sequential basis. Non-interest expenses increased 8% over the year-ago period to $15.53 billion.

The bank's performance on credit quality was also mixed, with provision for credit losses seeing a 25% decrease over the year-ago quarter but a 33% increase on a sequential basis.

CFO Doug Braunstein said during the conference call with the media that the overall credit story was still positive but that the management remained cautious on trends in home lending. Loan loss reserves remained unchanged during the quarter, reflecting that caution. The bank also said it does not expect significant improvements in the charge-off rates in the near-term.

True to earlier guidance, fees from investment banking declined to $1 billion from $1.9 billion in the second quarter and $1.5 billion in the year-ago period, with revenues declining across its advisory, equity and debt underwriting businesses.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JPM $63.20 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs