JPMorgan: Profits Fall, But the House Is in Order

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Dirty Money

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Beleaguered by litigation, JPMorgan Chase (NYSE:JPM) jogged, rather than sprinted, across the fourth-quarter finish line in 2013. The firm reported somewhat underwhelming year-end results on Tuesday morning, reflecting a year in which the bank, America’s largest by assets, reported its first quarterly loss in nearly a decade.

Fourth-quarter revenue fell 1 percent on the year to $24.1 billion, above the mean analyst estimate of $23.8 billion. Net income fell 7 percent on the year to $5.3 billion — earnings fell 6.5 percent to $1.30 per share, below the mean analyst estimate of $1.32 per share. Return on tangible common equity, a measure of the bank’s earnings relative to stockholders’ common equity, fell 1 percentage point to 14 percent.

For the full year, revenue was flat at $99.8 billion, above the mean analyst estimate of $98.7 billion. Net income fell about 16 percent to $17.9 billion — earnings fell about 16.3 percent to $4.35 per share, below the mean analyst estimate of $4.41 per share.

JPMorgan ended the year with a “fortress balance sheet,” as prescribed by Basel banking regulations. JPMorgan reported Basel 1 Tier 1 common capital of $149 billion, a ratio of 10.7 percent, and estimated Basel III Tier 1 common capital of $151 billion, a ratio of 9.5 percent.

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