Charges Convolute J.P. Morgan Earnings, as Book Value Keeps Rising

While the number may be short on earnings, it appears as though the allocated charges for legal and settlements came to $0.27 per share. Adjusted earnings are represented as $1.40 per share. Another issue is that revenue on a managed basis was listed as $24.1 billion.

It seems that the items in the report are going to convolute just how well or how poorly the numbers should really be taken. Shares were initially up less than 1%, but then they fell by less than 1%.

Jamie Dimon and team reported that the Basel 1 Tier 1 common equity ratio was 10.7%, while the Basel 1 Tier 1 capital ratio was 11.9%. Return on tangible equity was 14%; return on equity was 20% on $13.5 billion of average allocated capital. The bank’s headcount was 251,196 at the end of the quarter, and the average compensation ratio of expenses was 27%.

Book value per share rose to $53.25 in the fourth quarter from $52.01 in the third quarter, and tangible book value per share rose to $40.81 per share from $39.51 in the prior period.