Financial Business Update: JPMorgan’s Record Quarter, REITs Show Book Value Potentials

JPMorgan Chase & Co. (NYSE:JPM) posts a record third quarter 2012 net income of $5.7 billion, or $1.40 per share, on revenues
of $25.9 billion.

American Capital Agency Corp. (NASDAQ:AGNC), Annaly Capital Management (NYSE:NLY), and CYS Investments (NYSE:CYS) along with perhaps other mortgage real estate investment trusts, should post nice gains in book value originating from increased mortgage-backed securities prices, but Mark DeVries at Barclays says that the banks may have messed that up by spending the money hedging against rising interest rates.

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Bank of America Corporation (NYSE:BAC) is seeing almost one in six of its employees (around 42,000 persons) spend their time servicing the company’s problem loans, says Reuters. The firm, which is based in Charlotte, has experienced rising costs in that mortgage servicing area that jumped by 29 percent year-over-year from 2011, and around 7,000 employees have been added to its workforce, many of whom were taken from other areas within the bank.

Investing Insights: JPMorgan Chase & Co. Earnings: Beats Analysts’ Estimates.