JP Morgan Chase today reported that fourth-quarter profit jumped 47%, as revenue increased and it continued to set aside less to cover potential credit losses.
The bank reported fourth-quarter 2010 net income of $4.8bn, an increase of 47% compared with $3.3bn for the fourth quarter of 2009. Earnings per share were $1.12, compared with $0.74 for the fourth quarter of 2009. Full-year 2010 net income was $17.4bn, an increase of 48% compared with $11.7bn for the prior year. Earnings per share were $3.96, compared with $2.26 for 2009.
Jamie Dimon, chairman and chief executive officer, commented: "Solid performance in the quarter and for the year reflected good results across most of our businesses, which benefited from strong client relationships and continued investments for growth. Credit trends in our credit card and wholesale businesses continued to improve. In our mortgage business, while charge-offs and delinquencies have improved, credit costs still remain at abnormally high levels and continue to be a significant drag on our returns."
Credit-loss provisions were $3.04bn, down from
$8.9bn a year earlier and $3.22bn in the prior quarter.
“It’s going to be a long ugly mess, but it won’t be life threatening to JPMorgan,” Jamie Dimon told analysts on a conference call in reference to ongoing mortgage sales disputes. “We will be talking about this for every quarter over the next three years.”
CNBC's David Faber breaks down JPMorgan earnings and outlook:
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