Bank results fail to impress Wall Street
JPMorgan's and Wells Fargo's shares slip despite record profits.
Net income at JPMorgan surged 34% to $4.3 billion, or $1.40 per share. Revenue jumped 6% to $25.9 billion.
The results may heighten the feeling that Wall Street continues to thrive at the expense of Main Street, where unemployment remains high, though recently it has come down.
During the third quarter, JPMorgan benefited from strong results across the board. Mortgage bank originations jumped 29% to $47 billion, prompting CEO Jamie Dimon to remark that "the housing market has turned the corner." Investment banking surged 38% to $1.4 billion, buoyed by double-digit gains in debt and equity underwriting. Commercial Banking loan balances increased 15% to a record $124 billion, its ninth consecutive increase.
The picture at Wells Fargo was not as bright. Investors were displeased that net interest margin declined 25 basis points to 3.66% as fee income fell against a backdrop of record-low interest rates. There were gains in community banking and wholesale banking, along with mixed results in wealth, brokerage and retirement.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter@jdberr.
Close the banks. End the Federal Reserve. Get rid of Wall Street. These are the vehicles of our demise and have no real value to the nation or our society. Jamie Dimon is a loser.
But why should "liberals" vote for Romney? I highly doubt Romney/Ryan would be heading up a proposal to break up the big banks.... even less likely than an Obama administration.
This is for V_L: (thought I'd post it here too for you)
We're flying out tomorrow for the North Carolina Smokey Mountains. We don't need to stay at Jack Welsh's resort, we have had our own place up there since 87'. But, if you would like to visit, I'll ask Jack if he can put up up there for a few day's- I need someone that can dig for worms when I fish for rainbow trout
I got to go pack the suit cases now- hope to see you-----C-YA!!!!
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The solid report comes a month after the retailer closed all of its Canadian operations.
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