If JPMorgan Chase's (JPM) fourth quarter earnings are a sign of things to come for other large banks, bulls on the largest financial stocks are going to have sit tight a while longer for real signs of progress. While the core lending and credit card businesses seem to be doing alright, the lucrative investing banking business was even weaker than expected, and JPMorgan is not yet posting especially high returns on its capital.
Readers should note that this article was written before the company's conference cal,l and is based upon the company's press release and earnings supplements.
A Miss On The Top
JPMorgan reported top-line results of $22.2 billion - missing the analysts' average guess by close to $1 billion. Although investment banking performance was expected to be bad, it was even worse in this quarter as fees and trading revenue both fell significantly. Although declines were broadly expected, investors will need to see earnings reports from rivals like Goldman Sachs (GS), Citigroup (C), Bank of America (BAC), and Morgan Stanley (MS) to get a real sense of how weak the market was, and how much (if any) share JPMorgan lost.
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JPMorgan Earnings Disappointing, But Not Disastrous
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