JPMorgan Profit Rises, Beating Estimates

JPMorgan Profit Rises, Beating Estimates

June 22 (Bloomberg) -- Paul Miller, analyst at FBR Capital Markets, talks with Bloomberg's Mark Crumpton about executive changes at JPMorgan Chase & Co. and the outlook for financial regulatory overhaul. Miller says JPMorgan Chief Executive Officer Jamie Dimon wants a "deep bench" of executives. (Source: Bloomberg) JPMorgan Chase & Co., the second- biggest U.S. bank by assets, said profit rose 76 percent, higher than analysts estimated, as provisions for soured mortgages and credit-card loans declined.

Second-quarter net income climbed to $4.8 billion, or $1.09 a share, from $2.72 billion, or 28 cents, in the same period a year earlier and from $3.33 billion in the first quarter, the New York-based company said today in a statement. The per-share earnings compared with an average estimate for adjusted earnings of 71 cents projected by 22 analysts surveyed by Bloomberg.

"While the economy is showing signs of some weakness and soft patch, I think it's generally still moving in the right direction," said Matt O'Connor, an analyst with Deutsche Bank AG in New York. "Banks will be cautiously optimistic going forward, probably more optimistic than people thought."

Chief Executive Officer Jamie Dimon, 54, has kept the bank profitable throughout the financial crisis, relying on fee income to counter loan losses in mortgage lending and credit cards. The bank was the No. 1 underwriter of stocks and bonds in the U.S. in the first half of 2010.

JPMorgan is the first of the largest U.S. banks to report earnings. Bank of America Corp. and Citigroup Inc., the first- and third-largest U.S. lenders, respectively, may report earnings of $2.6 billion and $1.46 billion when they release results tomorrow, the Bloomberg survey shows.

Paul Miller, a former examiner for the Philadelphia Federal Reserve Bank and analyst at FBR Capital Markets, said he's watching to see what JPMorgan says about new bank regulations Congress is poised as early as this week to send to President Barack Obama to sign into law.

Compliance Costs

"That has to be something that has to be addressed up front," said Miller, who's based in Arlington, Virginia. "A lot of the compliance costs are going to be very meaningful, not including hiring more lobbyists to try to get the rules changed."

Dimon has previously estimated that the changes to derivatives regulation alone may cost JPMorgan "$700 million to a couple of billion dollars."

Financial companies have recorded losses and writedowns of $1.79 trillion stemming from the U.S. housing crisis and the highest U.S. jobless rate in 26 years, according to data compiled by Bloomberg. The pace of new problem loans eased last quarter as the U.S. economy showed signs of recovery, even as the federal government withdraws support from financial markets.

Goldman Sachs

Federal support for mortgage bonds and reduced interest rates helped JPMorgan, Goldman Sachs Group Inc., Bank of America and Citigroup rack up perfect records in their trading businesses between January and March, when they reported gains for every day in the period. Weaker-than-expected employment, the European debt crisis and reduced underwriting volume dragged down investment-banking revenue in the second quarter.

"What was remarkable about the first quarter is the consistency, that all of the major banks made money every single day," said Moshe Orenbuch, an analyst at Credit Suisse Group AG in New York. "That was both unusual and not likely to be repeated."

To contact the reporter on this story: Dawn Kopecki in New York at dkopecki@bloomberg.com.
Email


Daily News mempengaruhi Daily Price, tapi Daily News merupakan Chaos atau Noise buat Price Movement pattern/Price wave dari teori Elliott Wave.

Contoh:
- Pada masa Bearish, harga cenderung tutun setiap hari
- Suatu hari muncul berita bagus sekali dan hari itu naik +5%
- Tapi karena masa Bearish belum selesai (Correctrion Wave belum Tuntas) maka pada hari hari selanjutnya kenaikan tsb akan
hilang malah turun lebih dalam lagi.

Menurut Elliott Wave, News adalah Chaos yg mempengaruhi intraday chart TAPI TIDAK merubah Pola Wave.

Index Dowjones saat ini MASIH DALAM Correction Wave sampai Correction ini TUNTAS. Apa ada yg berbendapat saat ini Dow sudah memasuki Bullish period ?.

Mana bisa santai, MATERIAL movement is ahead of us....

TAL PLN + B7 selama ini TIDAK pernah gagal dalam memprediksikan Pergerakan yang Material, Kalo Elliott Wave BISA salah tapi TAL PLN belum pernah gagal... hehehe...

Coba bantuin pikirin apa Target nya ?, embah masih belum Full 100% karena masih ngurusin pindahan...

DJI -120 saat ini....(9:27 PM)

Apakah ini awal TAL PLN ?