(GuruFocus, October 14, 2009) JPMorgan Chase & Co. is a leading global financial services firm. The firm is a leader in investment banking asset management private banking private equity custody and transaction services and retail and middle market financial services. This morning, JPMorgan Chase & Co. reported third-quarter 2009 net income of $3.6 billion, compared with net income of $527 million in the third quarter of 2008. Earnings per share were $0.82, compared with $0.09 in the prior year.
Here is a analysis and discussion with Joshua Rosner of Research Firm Graham, Fisher & Co. He shares his thoughts regarding J.P. Morgan's third quarter earnings that beat analysts' estimates:
Jamie Dimon, Chairman and Chief Executive Officer, commented: “Our net income of $3.6 billion in the quarter reflected the strong earnings power of the company, with broad-based growth across the Investment Bank, Asset Management, Commercial Banking and Retail Banking. However, credit costs remain high and are expected to stay elevated for the foreseeable future in the Consumer Lending and Card Services loan portfolios. Accordingly, we have added $2.0 billion to our consumer credit reserves, bringing the firmwide total to $31.5 billion, or 5.3%1 of total loans. Tier 1 Common Capital, another key element of our fortress balance sheet, was also strengthened through capital generation during the quarter, to $101 billion, or 8.2%.
Jamie Dimon was credited as the earliest major bank CEO realized the peril of credit risk associated with the easy credit during the Real Estate bubble. He steered his company clear of the trouble and benefited from taking in Bear Stern and Washington Mutual at bargain price.
Year-to-date, the company is up more than 50%. From its March,2009 lows, the company has almost tripled. Here are a list of Investment Gurus who betted heavy on the stock with more than 3% of their asset under management invested in this one stock:
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Here is a analysis and discussion with Joshua Rosner of Research Firm Graham, Fisher & Co. He shares his thoughts regarding J.P. Morgan's third quarter earnings that beat analysts' estimates:
Jamie Dimon, Chairman and Chief Executive Officer, commented: “Our net income of $3.6 billion in the quarter reflected the strong earnings power of the company, with broad-based growth across the Investment Bank, Asset Management, Commercial Banking and Retail Banking. However, credit costs remain high and are expected to stay elevated for the foreseeable future in the Consumer Lending and Card Services loan portfolios. Accordingly, we have added $2.0 billion to our consumer credit reserves, bringing the firmwide total to $31.5 billion, or 5.3%1 of total loans. Tier 1 Common Capital, another key element of our fortress balance sheet, was also strengthened through capital generation during the quarter, to $101 billion, or 8.2%.
Jamie Dimon was credited as the earliest major bank CEO realized the peril of credit risk associated with the easy credit during the Real Estate bubble. He steered his company clear of the trouble and benefited from taking in Bear Stern and Washington Mutual at bargain price.
Year-to-date, the company is up more than 50%. From its March,2009 lows, the company has almost tripled. Here are a list of Investment Gurus who betted heavy on the stock with more than 3% of their asset under management invested in this one stock:
| Guru Name | Portfolio Date | Current Shares | % of Shares Outstanding | % of Total Assets Managed | Change from 1Q09 Holdings |
|---|---|---|---|---|---|
| Steve Mandel | 2009-06-30 | 12544028 | 0.32 | 5.8 | -19.59% |
| Andreas Halvorsen | 2009-06-30 | 8620500 | 0.22 | 5.12 | 55.44% |
| Mark Hillman | 2009-06-30 | 525683 | 0.01 | 4.86 | 3.83% |
| Richard Snow | 2009-06-30 | 2473505 | 0.06 | 4.3 | -7.54% |
| Brian Rogers | 2009-06-30 | 14954200 | 0.38 | 3.74 | -0.31% |
| HOTCHKIS & WILEY | 2009-06-30 | 11799537 | 0.3 | 3.47 | -0.61% |
| Ken Heebner | 2009-06-30 | 6065000 | 0.15 | 3.39 | 14.43% |
GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett, Steve Mandel, and Ken Heebner for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.
