NEW YORK - JPMorgan Chase & Co., the second bank this week to post dismal results, reported a decline in quarterly earnings Wednesday after suffering a $1.3 billion subprime-related hit.
The company said net income fell 34 % to $3 billion, or 86 cents a share, during the fourth quarter. The company earned $4.5 billion, or $1.09 a share, in the same period last year.
JPMorgan Chase was expected to earn 93 cents a share for the quarter ended in December, according to analysts surveyed by earnings tracker Thomson Financial.
Revenue rose 7 percent to $17.4 billion from $16.2 billion in the year-earlier period, beating estimates of $17.05 billion.
The company also reported a $1.3 billion writedown in the company's investment banking arm, due to the decline in value of its subprime holdings, which include complex instruments known as collateralized debt obligations.
Chairman and Chief Executive Jamie Dimon said this segment of the business, which saw its profits plunge 88 percent in the quarter to $124 million from $1.01 billion a year ago, faces continuing uncertainty.
JPMorgan has weathered tightening credit conditions better than rivals Merrill Lynch (MER, Fortune 500) and Citigroup (C, Fortune 500), which posted a record $9.8 billion fourth-quarter loss Tuesday and took a giant $18.1 billion write-down.
Last quarter, JPMorgan reported a rise in profit, beating Wall Street estimates, even as its investment banking business was hurt by turmoil in the global credit markets.
No comments:
Post a Comment