JP Morgan announces profit increase
(19 January 2010 – USA) New York based JP Morgan Chase has announced that it has doubled its profits for the full year to US$11.7 billion (A$12.72 billion).
The banking giant also quadrupled its fourth quarter net earnings to US$3.27 billion.
The results suggest that the global financial crisis is drawing to an end, however the increase in profits is likely to be met with public resentment as banks that received government bailouts begin to make money while the US economy struggles.
Jamie Dimon, chairman and chief executive of JP Morgan said in a statement that he is gratified by the results but also said that the bank fell short of both adequate return on capital and the firm’s potential earnings.
While the bank is seeing some stability in delinquencies, consumer credit costs remain high, and weak employment and home prices persist. Accordingly, the bank is remaining cautious, Mr Dimon added.
The profit per share was 12 cents better than predicted by analysts, at 74 cents per share.
JP Morgan, the second largest bank in the US by assets, saw revenue rise US$6.1 billion from US$19.1 billion in the same period last year.
For 2009, the profit was US$11.7 billion on US$100.4 billion in revenues, up from earnings of US$5.6 billion in 2008 on revenues of US$67.3 billion.
JP Morgan is likely to be up against some major taxes in the future if President Barack Obama is successful with his proposed tax to recoup money spent on the government bailout.
The president said that his determination is only heightened when he see reports of massive profits and obscene bonuses at some of the very firms who owe their continued existence to the American people.
The results suggest that the global financial crisis is drawing to an end, however the increase in profits is likely to be met with public resentment as banks that received government bailouts begin to make money while the US economy struggles.
Jamie Dimon, chairman and chief executive of JP Morgan said in a statement that he is gratified by the results but also said that the bank fell short of both adequate return on capital and the firm’s potential earnings.
While the bank is seeing some stability in delinquencies, consumer credit costs remain high, and weak employment and home prices persist. Accordingly, the bank is remaining cautious, Mr Dimon added.
The profit per share was 12 cents better than predicted by analysts, at 74 cents per share.
JP Morgan, the second largest bank in the US by assets, saw revenue rise US$6.1 billion from US$19.1 billion in the same period last year.
For 2009, the profit was US$11.7 billion on US$100.4 billion in revenues, up from earnings of US$5.6 billion in 2008 on revenues of US$67.3 billion.
JP Morgan is likely to be up against some major taxes in the future if President Barack Obama is successful with his proposed tax to recoup money spent on the government bailout.
The president said that his determination is only heightened when he see reports of massive profits and obscene bonuses at some of the very firms who owe their continued existence to the American people.
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