J.P. Morgan Earnings Settle Bank Expectations for Earnings Season (JPM)

J.P. Morgan Chase & Co. (NYSE: JPM) has just started the earnings season for the banks and financials.  Jamie Dimon and friends reported that the bank made some $2.37 billion.  The results were tallied up as $1.28 EPS on $25.8 billion in revenues. Thomson Reuters has estimates of $1.16 EPS and $25.48 billlion in revenues. 

The company’s tier-one capital ratio was listed as 12.3% and its tier–one common equity ratio was put at 10%.  The DJIA component also said that it aims to meet Basel III requirements well ahead of time.  Jamie Dimon talked about mortgage losses continuing while credit card trends continue to improve.

You can decide what you want to count in the items and exclude from the items.  The bank said that earnings saw a $0.29 EPS boost by reduced credit card loan loss reserves, but were cut by $0.10 from foreclosure costs and cut by $0.16 on mortgage servicing.

So far it looks as though the banking stocks are going to get a good reception from earnings.  J.P. Morgan shares closed yesterday at $46.64 and so far we have shares trading up marginally around $46.80 in the pre-market.

JON C. OGG