JPMorgan reported a 6.6% drop in quarterly profit with net income down.
Image: iStock © David Henderson
Legal costs and US regulation to increase capital levels have driven JPMorgan profits down under expectations as the biggest U.S. bank by assets reported fourth-quarter earnings before trading opened today.
Shares stand at 58.68 before trading opens.
Forecasts from Thomson Reuters put earnings per share of $1.31 on $23.64 billion in revenue – actual figures were $1.19 per share, on revenue of $23.6 billion.
Highlights of the earnings report are as follows:
Fourth-quarter 2014 net income of $4.9 billion, and $1.19 per share, on revenue of $23.6 billion
Full-year 2014 net income of $21.8 billion, and record $5.29 per share, on revenue of $97.9 billion
Earnings per share were $1.19, compared with $1.30 in the fourth quarter of 2013.
Revenue for the quarter was $23.6 billion, down 2% compared with the prior year.
The Firm’s return on tangible common equity for the fourth quarter of 2014 was 11%, compared with 14% in the prior year.
Core loans increased by 8% compared with the prior year.
The Firm returned approximately $3 billion of capital to shareholders in the fourth quarter.
Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial results: “Each of our businesses and the company are very well positioned going into 2015 for long-term growth and success.”
Earlier in the day reports regarding statements from Goldman Sachs put JPMorgan as a stock that could increase in value by between 5% and 25% if the huge bank broke apart.
MT4 chart: JPMorgan
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