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Friday, January 13, 2012

J.P. Morgan Reports $18.98bn Profit For 2011

J.P. Morgan Chase reported their Q4 2011 and 2011 full year earnings Friday. The bank reported lower Q4 earnings due to lower profits in the Investment Banking Division. JPM shares fell 2.5% on the day. Details below:

Full Year 2011 Highlights:

Investment Banking:
  • Continue to rank #1 in Global IB Fees for full year  
  • Q4: IB fees of $1.1B down 39% YoY on lower industry- wide volumes
  • Q4: Net income of $726mm on revenue of $4.4B
Asset Management:
  • Assets under management of $1.3T up 3% YoY; Assets under supervision of $1.9T up 4% YoY 
  •  Q4: Net income of $302mm down 40% YoY 


Year over year Q4 number may have been disappointing, but the bottom line is the bank generated $19bn in earnings in a very volatile and unpredictable 2011.

Jamie Dimon Quotes:

On Capital Markets:
"The United States has the widest and deepest and most transparent capital markets in the world and you should repeat that over and over."

On Europe:
"I think what the ECB did was a very, very powerful thing, okay? Which is extending the 

collateral in 3 year funding. So powerful, in fact, I think you could probably make the statement that eliminates bank liquidity or funding problems for at least next year. That's a pretty powerful statement. That was the biggest single risk of an uncontrollable surprise right there. So if that's taken on the tip, that's a good thing."

On JPM Stock Price:
"The stock is very cheap and particularly below tangible book value. I'd like to buy a lot back which, of course, we can't do"

On the State of Global Finance:
"Basically, no one is in-charge of the global financial system. I mean, if you look to the
 inconsistencies and the counter-cyclical things we're doing, the process, it's crazy."

J.P. Morgan 2011 Full Year and Q4 Earnings Presentation
Listen to the Conference Call
Financial Statements Supplement
Earnings Call Transcript [Seeking Alpha]

JP Morgan Declines a Profit Falls [Bloomberg]
Banks Lead Stock Market Lower As JP Morgan Surprises Wall Street With Dissapointing Earnings [Washington Post]

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