JPMorgan Chase & Co. (JPM) Q4 Profit Jumps 53 Percent

JPMorgan Chase & Co. (JPM) Q4 Profit Jumps 53 Percent
Joe Mabel [CC BY-SA 3.0], via Wikimedia Commons

JPMorgan Chase & Co. (NYSE:JPM) declared its fourth quarter 2012 earnings. The company posted a revenue of $24.4 billion. Analysts had estimated $24.6 billion. The earning per share of the company was recorded at $1.39, which was better than analysts’ estimate of $1.16.

JPMorgan Chase & Co. (JPM) Q4 Profit Jumps 53 Percent

Loan reserves amounted to $21.9 billion, and Global liquidity reserve was $491 billion. The company posted net income for the quarter at $5.7 billion, as against net income of $3.7 billion in the corresponding quarter of 2011.

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According to Jamie Dimon, the Chairman and Chief executive, the company reported record net income and return on tangible common equity of 15 percent for the third consecutive year. The results of the company showcased a strong performance across all its segments in the fourth quarter and for fiscal year 2012. Further, as per Jamie Dimon, the company succeeded in gaining market share and maintaining its leadership position in the significant areas of its franchise.

Dimon added: “We continued to see favorable credit conditions across our wholesale loan portfolios and strong credit performance in our credit card portfolio, where charge-off rates remain at historic lows. The real estate portfolios, while at elevated levels of losses, continued to show improvement as the housing market and the economy continued to recover. As a result, we reduced the related allowance for credit losses by $700 million in the fourth quarter and we are likely to continue to see reductions in the allowance as the environment improves.”

JPMorgan Chase & Co. (NYSE:JPM) maintained and further strengthened its balance sheet with Base I Tier 1 common ratio 1 of 11.0 percent, an increase from 10.4 percent in the third quarter.

The Firm provided credit and raised capital of over $1.8 trillion for its clients. This comprises of $20 billion for small business, which is an increase by 18 percent. The Firm created more than 920,000 mortgages, provided credit cards to approximately 6.7 million people, raised capital and provided credit of nearly $85 billion for approximately 1,500 non profit and government entities.

Dimon concluded: “We are particularly proud that, through the turbulence of recent years, we never stopped serving clients and investing in the future of our franchise – opening new offices and branches, adding bankers in key markets, innovating and gaining market share. The capital strength and earnings power of the Firm is as strong as it has ever been, and our 260,000 employees are doing more than ever to serve our customers and clients, and support our communities around the world. Challenges still exist, but as we look forward to 2013, we remain optimistic.”

For 2012, JPMorgan Chase & Co. (NYSE:JPM) posted earnings of $21.3 billion, against $19 billion in 2011. Total revenue for the year stood flat at $97 billion.

The bank’s earnings, like those of other big lenders, has been boosted by an increase in mortgage lending, helped in part by federal programs. The bank also continues to face a slew of legal problems.

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