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JP Morgan Profit Drops 34% in Q4

Posted Jan 16, 08 7:03 AM CST in Business 

(Newser) – Subprime mortgage writedowns of $1.3 billion cut deeply into better-than-expected revenue gains at JP Morgan Chase in the fourth quarter, leaving the nation’s third-largest bank with net income of $2.97 billion, or 86 cents per share, a 34% drop from a year ago, reports Bloomberg. The writedown is a pittance compared to Citigroup’s $18.1 billion announced yesterday.

The bank’s $17.4-billion revenue was 7% over last year, slightly more than analysts had expected. It was the first profit slip since 2005. Morgan, focused more on retail banking more than its rivals, was exposed less to the subprime contagion. Morgan’s market value slipped 18% in the past 12 months; Citi lost 50% and Bank of America 29%.

Source Bloomberg

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The headquarters for J.P. Morgan Chase & Co. is shown in this Jan. 17, 2006 file photo in New York.   (Associated Press)
James Dimon, chairman and CEO of JP Morgan Chase & Co., holds a news conference in New York in this file photo of June 14, 2007.   (Associated Press)
James Dimon, chairman and CEO of JP Morgan Chase & Co.   (Associated Press)
JP Morgan Chase financial building is shown 28 April 2005, on Park Ave in midtown New York City   (Getty Images)
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