Friday, January 13, 2012

J.P. Morgan Profit Dives 23%


J.P. Morgan Chase & Co. reported a 23% drop in fourth-quarter profits, the result of another weak quarter for investment banking operations, but executives said loan-growth numbers across the bank signal an improving economy, according to the Wall St Journal report.

As the first major bank to report for the fourth quarter, J.P. Morgan's results offer a glimpse into what is largely expected to again be a bleak quarter for the nation's largest financial institutions. Revenue at the bank missed expectations, and shares shed 4.1% to $35.37 in recent trading.

But while the Wall Street side of the business was slow, as was expected given the low demand for mergers and stock offerings, the bank’s business-lending operations continued to be in high demand, a more positive sign for U.S. businesses and the economy as a whole. Total profit reported was $3.73 billion, or 90 cents a share, down from year-ago earnings of $4.83 billion, or $1.12 a share, but in line with the analyst estimate of 90 cents a share on Thomson Reuters…

Read more at http://online.wsj.com/article/SB10001424052970204409004577158383843908566.html?mod=WSJ_hp_LEFTTopStories

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