Tuesday, November 25th0.1°C
22246
23488

JPMorgan's first-quarter profit falls as investment banking and mortgage revenue drops

NEW YORK, N.Y. - JPMorgan Chase, the nation's biggest bank by assets, said Friday its first-quarter earnings fell 20 per cent, driven by a decline in investment banking and mortgage lending.

EARNINGS: The bank reported net income of $4.9 billion for the first quarter, after stripping out payments to preferred stockholders. That was down from $6.1 billion in the same period a year earlier.

MISSED EXPECTATIONS: On a per-share basis, the earnings amounted to $1.28. That was worse than estimates of analysts polled by FactSet, who had been expecting $1.39.

LOWER REVEUE: Revenue, after stripping out the effect of an accounting charge for credit losses, was $23.8 billion, down 8 per cent from $25.8 billion a year earlier.

FIXED INCOME TRADING: Revenues at the bank's fixed income trading business, part of its investment banking unit, slumped 21 per cent to $3.8 billion.

"I look at it as doing fine, it's just not that predictable a business," said Jamie Dimon, JPMorgan's CEO and Chairman. "There's nothing wrong with that, you just have to deal with it over time."

MORTGAGE BUSINESS SLOWS: The bank's mortgage business continued to slow. The increase in bond yields since last summer has caused mortgage rates to rise, which in turn has stopped consumers from refinancing their home loans. Revenue at the bank's mortgage unit was $1.6 billion, down $1.1 billion from the same period a year earlier.

The bank doesn't expect the trend to change anytime soon. Chief Financial Officer Marianne Lake told reporters on a conference call to "expect that trend to be relatively consistent."

THE STOCK REACTION: Shares are down $2.44, or 4 per cent, at $54.95 in early trading. The bank's stock is down 6.5 per cent this year.

The Canadian Press


Read more Business News

24035


Recent Trending




Today's Market
S&P TSX15073.65+58.24
S&P CDNX780.64-6.86
DJIA17814.94-2.96
Nasdaq4758.252+3.36
S&P 5002067.03-2.38
CDN Dollar0.8879-0.0006
Gold1199.30+2.2001
Oil74.10+0.01
Lumber328.80-0.70
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32+0.04
Cantex0.040.00
Anavex Life Sciences0.175-0.005
Metalex Ventures0.030.00
Russel Metals32.14+0.65
Copper Mountain Mining2.15-0.02
Colorado Resources0.130.00
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.325-0.04

 
23744


24041

FEATURED Property
1866587556 Knowles Road, Kelowna, BC
4 bedrooms 4 baths
$799,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...

_



24119

24185


Member of BC Press Council


23087