JP Morgan Earnings Fell 23 Percent in Q4

JP Morgan Chase & Co (NYSE:JPM) reported earnings for the fourth quarter that were in line with estimates, but fell 23 percent as it faced major headwinds during the quarter due to the European crisis. As a result trading and corporate deals were depressed, but the silver lining, according to Chief Executive Jamie Dimon, was in improved demand for loans and better credit quality owing to a recovery in the economy.

However, according to Rick Meckler, president of Libertyview Capital Management, New York, “The bigger negatives tend to be the housing and mortgage situation and investors questioning, ‘Have we really hit bottom in this sector or is this just a black hole?’”

A kinder view emerged from Michael Holland, founder, Holland & Co, who said, “The earnings show how well JP Morgan can be managed in one of the roughest times,” said money manager Michael Holland, founder of Holland & Co. “They were able to pull off a meet-or-beat quarter.”

Net income came in at $3.72 billion (90 cents per share) compared to $4.83 billion ($1.12 a share) last year. Return on equity was down to 8 percent from 11 percent in the same quarter last year and 9 percent in the immediately previous quarter.

JP Morgan’s shares are trading down 3.5% percent in pre-market trades, though they were up 11 percent since the beginning of the year.

Further Earnings Reading: JPMorgan Chase & Co. Earnings: Bad Luck Continues>>

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