JPMorgan (JPM) gets a lot of press for being one of the best-run large banks in the country, and that praise is well deserved up to a point. Like virtually every bank earnings report these days, there are certainly some areas of trouble and concern, but overall the results would seem to offer a strong validation for how CEO Jamie Dimon positioned the company both for the credit crisis and the recovery.
Overall the company did report some upside in total revenue (around $500 million depending upon whose “average” estimate you use) and earnings were $0.12 ahead of average expectations. JPMorgan saw about a three-cent net benefit from special items, so overall profitability was solid. Details matter, though, and a large part of JPMorgan's outperformance was due to the investment banking operations.
I-Banking A-Ok
Investment banking was the only area to show sequential revenue growth and a clear area of strength for JPMorgan this quarter. Although banking fees were down a bit, trading was exceptionally strong this quarter – defying the expectation of generally weak trading results from big banks this quarter.
To read the full piece, please go to:
A First Glance at JP Morgan Earnings Is Somewhat Encouraging
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