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JPMorgan Chase – JPM – Record Third-Quarter 2012 Net Income of $5.7 Billion

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JPMorgan Chase & Co. (NYSE: JPM) reported record net income for third-quarter 2012 of $5.7 billion, compared with net income of $4.3 billion in the third quarter of 2011. Earnings per share were a record $1.40, compared with $1.02 in the third quarter of 2011. The Firm’s return on tangible common equity for the third quarter of 2012 was 16%, compared with 13% in the prior year.

JPM – Strong Performance Across All Businesses

  • Continued momentum in all our businesses; strong lending in Commercial Banking, Business Banking, Mortgage Banking and Asset Management
  • Investment Bank reported favorable Fixed Income results; maintained #1 ranking for Global Investment Banking fees
  • Consumer & Business Banking average deposits up 9%; Business Banking loan growth for the eighth consecutive quarter to a record $19 billion, up 8%
  • Mortgage Banking record production revenue; originations of $47 billion, up 29%
  • Credit Card sales volume1 up 11%
  • Commercial Banking reported record revenue; loan growth for the ninth consecutive quarter to a record $124 billion, up 15%
  • Treasury & Securities Services reported record assets under custody of $18.2 trillion, up 12%
  • Asset Management reported fourteenth consecutive quarter of positive net long-term product flows; record loan balances of $75 billion
  • JPMorgan Chase supported consumers, businesses and our communities
  • Provided $200 billion of credit to consumers YTD; originated 664,000 mortgages YTD
  • Provided $15 billion of credit to U.S. small businesses YTD, up 21%
  • Provided over $380 billion of credit to corporations YTD
  • Raised nearly $670 billion of capital for clients YTD
  • $52 billion of capital raised and credit provided for more than 1,300 nonprofit and government entities YTD, including states, municipalities, hospitals and universities
  • Hired more than 4,500 U.S. veterans since the beginning of 2011
  • Third-quarter results included the following significant items:
  • $900 million pretax benefit ($0.14 per share after-tax increase in earnings) from reduced mortgage loan loss reserves in Real Estate Portfolios
  • $825 million pretax incremental charge-offs ($0.13 per share after-tax decrease in earnings) due to regulatory guidance on certain residential loans in Real Estate Portfolios
  • $888 million pretax benefit ($0.14 per share after-tax increase in earnings) due to extinguishment gains on redeemed trust preferred capital debt securities in Corporate
  • $684 million pretax expense ($0.11 per share after-tax decrease in earnings) for additional litigation reserves in Corporate
  • Fortress balance sheet strengthened
  • Basel I Tier 1 common of $135 billion; or 10.4%, up from 9.9% in the prior quarter
  • Estimated Basel III Tier 1 common of 8.4%, up from 7.9% in the prior quarter
  • Loan loss reserves of $23 billion; Global Liquidity Reserve of $449 billion

About JPMorgan Chase & Co. – JPM

JPMorgan Chase & Co. (JPM) is a leading global financial services firm with assets of $2.3 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands.

JPM Reports Record Third-Quarter 2012 Net Income of $5.7 Billion, or Record $1.40 per Share, on Revenueof $25.9 Billion

JPM – Strong Performance Across All Businesses

·         Continued momentum in all our businesses; strong lending in Commercial Banking, Business Banking, Mortgage Banking and Asset Management

o   Investment Bank reported favorable Fixed Income results; maintained #1 ranking for Global Investment Banking fees

o   Consumer & Business Banking average deposits up 9%; Business Banking loan growth for the eighth consecutive quarter to a record $19 billion, up 8%

o   Mortgage Banking record production revenue; originations of $47 billion, up 29%

o   Credit Card sales volume1 up 11%

o   Commercial Banking reported record revenue; loan growth for the ninth consecutive quarter to a record $124 billion, up 15%

o   Treasury & Securities Services reported record assets under custody of $18.2 trillion, up 12%

o   Asset Management reported fourteenth consecutive quarter of positive net long-term product flows; record loan balances of $75 billion

·         JPMorgan Chase supported consumers, businesses and our communities

o   Provided $200 billion of credit to consumers YTD; originated 664,000 mortgages YTD

o   Provided $15 billion of credit to U.S. small businesses YTD, up 21%

o   Provided over $380 billion of credit to corporations YTD

o   Raised nearly $670 billion of capital for clients YTD

o   $52 billion of capital raised and credit provided for more than 1,300 nonprofit and government entities YTD, including states, municipalities, hospitals and universities

o   Hired more than 4,500 U.S. veterans since the beginning of 2011

·         Third-quarter results included the following significant items:

o   $900 million pretax benefit ($0.14 per share after-tax increase in earnings) from reduced mortgage loan loss reserves in Real Estate Portfolios

o   $825 million pretax incremental charge-offs ($0.13 per share after-tax decrease in earnings) due to regulatory guidance on certain residential loans in Real Estate Portfolios

o   $888 million pretax benefit ($0.14 per share after-tax increase in earnings) due to extinguishment gains on redeemed trust preferred capital debt securities in Corporate

o   $684 million pretax expense ($0.11 per share after-tax decrease in earnings) for additional litigation reserves in Corporate

·         Fortress balance sheet strengthened

o   Basel I Tier 1 common of $135 billion; or 10.4%, up from 9.9% in the prior quarter

o   Estimated Basel III Tier 1 common of 8.4%, up from 7.9% in the prior quarter

o   Loan loss reserves of $23 billion; Global Liquidity Reserve of $449 billion

 

About JPMorgan Chase & Co. – JPM

JPMorgan Chase & Co. (JPM) is a leading global financial services firm with assets of $2.3 trillion and operations worldwide. The firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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