The bank blew through expectations. Net income rose to $3.3 billion from $702 million in the same period last year. EPS rose to $.74 from $.06. JPM ended the year as the No.1 bank in the world in terms of global investment banking fees.
At the company’s investment bank, net income was $1.9 billion, an increase of $4.3 billion from the prior year. The results reflected much higher net revenue, a benefit from the provision for credit losses, and lower noninterest expense.
Retail Financial Services reported a net loss of $399 million, compared with net income of $624 million in the prior year. The provision for credit losses was $4.2 billion, an increase of $653 million from the prior year and $241 million from the prior quarter. Weak economic conditions and housing price declines continued to drive higher estimated losses for the mortgage and home equity portfolios.
Commercial banking results posted net income of $224 million, a decrease of $256 million, or 53%, from the prior year, driven by an increase in the provision for credit losses, lower net revenue and higher noninterest expense.
That leave a lot for Bank of America (NYSE:BAC) and Citigroup (NYSE:C) to live up to.
Douglas A. McIntrye
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