JPMorgan Chase & Co. (NYSE:JPM), the second-largest US bank by assets, is scheduled to release financial results for second quarter 2010 before the opening bell on Thursday, July 15, 2010. Analysts, on average, expect the company to report earnings of 71 cents per share on revenue of $25.96 billion. In the year ago period, JPMorgan Chase reported earnings of 28 cents per share on revenue of $27.71 billion.
JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. It has emerged as one of the strongest U.S. banks from the worst financial crisis in decades, thanks to its "fortress balance sheet." Led by CEO Jamie Dimon, the massive financial services company never posted a quarterly loss during the downturn. At the end of first quarter, JP Morgan had a Tier 1 Capital ratio of 11.5% and a Tier 1 Common ratio of 9.1%.
In the preceding first quarter, the New York-based bank reported a sharp jump in first-quarter profit, aided by strong results from its Investment Bank and Asset Management businesses. The company said that its fiscal-first quarter net income surged 55% to $3.3 billion or 74 cents per share, from $2.14 billion or 40 cents per share in the year-ago quarter. Revenue increased 5% to $28.2 billion from $26.92 billion. Analysts on average expected the company to report earnings of 64 cents per share on revenue of $26.47 billion. The company's Investment Bank business recorded fourth-quarter net income of $2.5 billion, an increase of $865 million from the prior year. Asset Management posted a net income of $392 million, an increase of $168 million, or 75%, from the prior year. JPMorgan Chase reported positive trading revenue every day in its first quarter.
JPMorgan last month reported that credit-card loans more than 30 days late dropped to 4.22 percent from 4.4 percent in the prior month. That was the lowest since July 2009.
Late in June, House and Senate lawmakers reached landmark agreement on overhauling financial regulation, easing investors' anxiety over the bill. The approval of the historic financial regulation eliminated some of the uncertainty in the financial industry. Although the lawmakers softened Obama administration's proposal to ban banks from proprietary trading, the exact impact of the legislation remains difficult to quantify. According to analysts at Goldman Sachs, earnings at the big financial institutions like JP Morgan could fall by as much as 13 per cent following the passing of proposals into law.
Recently, the firm shuffled three of its top executives, appointed a new chief financial officer and created a position to expand the financial-services giant's international businesses. The move is being seen by many as part of management's plan to groom a potential successor to Chief Executive James Dimon.
Among other developments, the company agreed to acquire Bermuda based private equity administration services business of Schroders Plc. Early in July, JP Morgan completed its acquisition of global oil, global metals and European power and gas assets of RBS Sempra Commodities LLP. The deal was originally announced on February 16, 2010. In terms of stock performance; JP Morgan shares have gained nearly 12 percent over the past year.
Disclosure: Author doesn't own any of the stocks discussed here.
