As when J.P Morgan, the largest US Bank in terms of assets, reports its 4Q profit, there is a bullish estimate – well credits goes to higher earnings within its investment banking division.
Profit rise has been reported to be approx. US$ 5.43 billion i.e. US$ 1.32/share in comparison to previous estimates of year 2014 where the profit was US$ 4.93 billion i.e. US$ 1.19/share. Profit in the investment banking division was bullish with US$1.75 billion from US$ 972 million in the 4Q of year 2014. As for trading revenue it was bearish with 4% at US$ 3.64 billion from US$ 3.8 billion in 4Q of year 2014. Compared with 3Q, trading was bearish with 16%. Costs plunged to US$ 14.26 billion from US$ 15.41 billion in year 2014, as well. Not to mention, as per Thomas Reuters’ analysis poll, the expected earnings were US$ 1.25/share. Moreover, the revenue rate measured was US$ 22.89 billion where it reaches around US$ 23.75 billion.
Investors are looking ahead for bank’s next earnings call in order to know if Chief Financial Officer Marianne Lake or Chairman and CEO James Dimon, shed light on topics ranging from the impact of $30 oil on the bank’s balance sheet to the likelihood of further U.S. interest-rate increases and skittishness about China and Asian stock markets.
In 4Q, the total legal costs were worth US$ 644 million in comparison to US$ 990 million in the same time span. Last year in the month of January, The bank paid an additional US$ 4 million to the SEC for settling charges it misled customers about its brokers’ compensation. This week’s announcement that MetLife Inc. will divest a chunk of one of its main business could re-insert J.P. Morgan into the debate about whether it might be better for shareholders.
