The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Bank Earnings Season 2Q 2014: J P Morgan tries to get done before Markets open!

On JP Morgan’s Dimon crisis, refer live blog here

JP Morgan does try to make up every time it changes key policy, moving its earnings announcement out of Goldman Sachs and Wells Fargo scanner range with an early morning call on Tuesday. The recovery in . revenues is encouraging as well at $25.3 Bln, meeting our heartfelt target missed on the trot for the last 15-16 quarters(someone check and get back, data;s here or on jp morgan site)

The expenses outlook is expected to be $50 Bln for the full year and CFO Marianne West does not expect the jump in business in June to sustain from the looks of it in July. Trading income cuts were probably still better than median on the street, down 15% in Fixed and 10% in Equities.

The Net Income of $6 Bln produced a measly $1.46 in Earnings tough that has translated into an ROE of 14%. Credit balances are doing much better with SME Banking balances jumping 46% for the quarter over 2Q 2013. Custody assets also finally jumped a good bit, growing 14% in Q2

Continuing buybacks netted $1.5 Bln to shareholders and Tier I equity just kissed 10% again at $161 Bln. The Bank reported the new SLR at 5.4% and LCR of $576 Bln. Figures for different banks are not comparable

The bank counted another quarter of 8% own share in CIB business including Custody assets

cib2q2014

Trading and Advisory Revenue came back to the $9 Bln mark after cuts in trading business and improvements over the linked quarter did not keep pace with the 8% jump in expenses. IB revenues were $1.8 Bln. Included Markets and Investor Services revenues were down 12% despite the jump in custody assets

ccbq22014 Mortgage Production revenue was down $900 mln to a paltry $330 mln though production expense also cut by half on headcount reductions and Servicing revenue gre back to take the edge off the big fall after a respite that lasted 1-2 quarters. Fees income in mortgages were down a third to $1.3 Bln, Net Revenues including Flat interest Income a 25% cut to $2.3 Bln

The 7% jump in Consumer banking revenue traveled directly to profits, Net income up 28% to just under $900 mln. CBB RoE was 19% after a 26% Q1 though Opex jump of 7% was explained as an investment in new controls and a marketing investment in cards

Auto loans originations have increased to $7.1 Bln while the bank added claims of 50% of Ecommerce transactions business from the Top 500 internet merchants on the 10th anniversary of the Bank one JP Morgan merger

Revenues and margins in Asset management and Commercial Banking were flat thoughthe contribution in Corporate / PE businesses jumped back to a positive contribution of $300 mln after a $552 mln loss in the last quarter

Dimon asserted clearly that the volume of FHA business has been reduced specifically by the bank

Advertisements

Information

This entry was posted on July 15, 2014 by in Uncategorized.

Archives

%d bloggers like this: