Another bank skates by without an earnings surprise due to subprime credit losses. Representing JPMorgan’s “second consecutive big beat” of Wall Street estimates, the bank posted a 20% gain on net income in Q2 to $4.2 billion, beating estimates by 10%. Quarterly revenue increased 25% over last year to $18.9 billion.
Surges in investment banking, asset management and private equity drove the quarterly gains. Investment banking experienced a revenue gain of 34% to $5.8 billion and a net income gain of 41% to $1.2 billion. Asset management saw a 32% jump in revenue to $2.1 billion and a 44% jump in net income to $0.5 billion. Private equity gains more than doubled from $0.5 billion to $1.3 billion.
JPMorgan’s retail bank was hurt by weakness in home equity lending and saw an earnings dip of 10% on a revenue gain of 15%. The credit-card arm was similarly impacted, losing 13% in net income on a 1% revenue gain.
Shares of JPMorgan (NYSE: JPM) are down over 2% so far in daily trading.
J.P. Morgan Net Rises 20% On Private-Equity Gains [Wall Street Journal]
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nice title
When are you guys going to do some investigative reporting about the Enron accounting going on at these banks? You could bust this place wide open. And by “the place” I don’t mean JPM, I am talking about every one of these banks. Mark this down, THEY ARE ALL HIDING LOSSES.
BTW: I was in Grand Central when the pipe exploded. Even snapped some photos with my treo. Actually thought about texting them to you guys (don’t you feel all warm and fuzzy). But alas, I won’t be around for a bit so I’ll let you sleep on the Enron accounting comment — check the credit market’s reaction to “RECORD earnings!”. We know they fudged the #s because we know what the toxic shit in our books are worth (and it ain’t much!) and Merrill, JPM, LEH and the others own 100x times what the rest of us have.
Peace, bitches.