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JPMorgan Chase Reports Fourth-Quarter 2012 Net Income Of $5.7 Billion, Or $1.39 Per Share, On Revenue1 Of $24.4 Billion

Stocks in this article: JPM

JPMorgan Chase & Co. (NYSE: JPM):

  • Strong performance across our businesses 2 : strong lending in Commercial Banking, Business Banking, Mortgage Banking and Asset Management
    • Consumer & Business Banking average deposits up 10%; Business Banking loan growth for the ninth consecutive quarter to a record $18.9 billion, up 7%
    • Mortgage Banking reported strong production revenue; originations of $51.2 billion, up 33%
    • Credit Card sales volume 1 up 9%
    • Corporate & Investment Bank reported record debt underwriting fees and maintained #1 ranking for Global Investment Banking fees; record assets under custody of $18.8 trillion, up 12%
    • Commercial Banking reported record revenue; loan growth for the tenth consecutive quarter to a record $128.2 billion, up 14%
    • Asset Management reported record revenue; fifteenth consecutive quarter of positive net long-term client flows; record loan balances of $80.2 billion
  • JPMorgan Chase supported consumers, businesses and communities in 2012
    • Over $1.8 trillion of capital raised and credit 1 provided
      • $275 billion for consumers; originated more than 920,000 mortgages
      • $20 billion for U.S. small businesses, up 18%
      • $520 billion for corporations
      • $915 billion of capital raised for clients
      • $85 billion of capital raised and credit 1 for nearly 1,500 nonprofit and government entities, including states, municipalities, hospitals and universities
    • Hired nearly 5,000 U.S. veterans and service members since the beginning of 2011
  • Fourth-quarter results included the following significant items
    • $900 million pretax expense ($0.14 per share after-tax reduction in earnings) for mortgage-related matters in Mortgage Banking, predominantly the Independent Foreclosure Review settlement
    • $567 million pretax loss ($0.09 per share after-tax reduction in earnings) from debit valuation adjustments (“DVA”) in the Corporate & Investment Bank
    • $620 million after-tax benefit ($0.16 per share after-tax increase in earnings) from tax adjustments in Corporate
    • $700 million pretax benefit ($0.11 per share after-tax increase in earnings) from reduced mortgage loan loss reserves in Real Estate Portfolios
  • Fortress balance sheet strengthened
    • Basel I Tier 1 common 1 of $140 billion, or 11.0%, up from 10.4% in the prior quarter
    • Estimated Basel III Tier 1 common 1 of 8.7% 3 , up from 8.4% in the prior quarter
    • Loan loss reserves of $21.9 billion; Global Liquidity Reserve of $491 billion

JPMorgan Chase & Co. (NYSE: JPM) today reported net income for the fourth-quarter of 2012 of $5.7 billion, compared with net income of $3.7 billion in the fourth quarter of 2011. Earnings per share were $1.39, compared with $0.90 in the fourth quarter of 2011. Revenue 1 for the quarter was $24.4 billion, up 10% compared with the prior year. The Firm’s return on tangible common equity 1 for the fourth quarter of 2012 was 15%, compared with 11% in the prior year.

Net income for full-year 2012 was a record $21.3 billion, compared with $19.0 billion for the prior year. Earnings per share were a record $5.20 for 2012, compared with $4.48 for 2011. Revenue 1 for 2012 was $99.9 billion, flat compared with 2011.

JPMorgan Chase & Co. also announced today that the Firm’s Management Task Force and the independent Review Committee of the Firm’s Board of Directors (the “Board Review Committee”) have each concluded their reviews relating to the 2012 losses by the Firm’s Chief Investment Office (“CIO”) and have released their respective reports. Both reports are available on the Firm’s website and are discussed at greater length in a Form 8-K filed with the SEC today.

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