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JP Morgan Profit Drops 34% in Q4

$1.3B in subprime writedowns hit earnings at third-largest bank

By Jim O'Neill, Newser User

Posted Jan 16, 2008 7:03 AM CST

(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%.

The headquarters for J.P. Morgan Chase & Co. is shown in this Jan. 17, 2006 file photo in New York. (Associated Press)

JP Morgan Chase financial building is shown 28 April 2005, on Park Ave in midtown New York City (Getty Images)

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)

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JP Morgan Profit Drops 34% in Q4

$1.3B in subprime writedowns hit earnings at third-largest bank

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Feds Sue Big Banks Over Mortgages

US accuses them of dodging due diligence as crisis fallout spreads

WaMu 'Poisoned' Financial System: Senate Report

Senate panel says lender knowingly built 'mortgage time bomb'

JPMorgan Earns $3.6B, Despite Loan Losses

Market soars as investment profits give bank strong 3rd quarter

Top Subprime Lenders Owned by Bailout Banks

Analysis of gov't data reveals sources of the economic meltdown

Fannie Mae: Tenants Can Stay

Fannie Mae won't evict tenants after foreclosures

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JP Morgan Profit Drops 34% in Q4

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OTHER STORIES ON OUR RADAR

subprime mortgages • corporate earnings • JPMorgan Chase

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Feds Sue Big Banks Over Mortgages

US accuses them of dodging due diligence as crisis fallout spreads

WaMu 'Poisoned' Financial System: Senate Report

Senate panel says lender knowingly built 'mortgage time bomb'

JPMorgan Earns $3.6B, Despite Loan Losses

Market soars as investment profits give bank strong 3rd quarter

Top Subprime Lenders Owned by Bailout Banks

Analysis of gov't data reveals sources of the economic meltdown

Fannie Mae: Tenants Can Stay

Fannie Mae won't evict tenants after foreclosures

About Us

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Newser By Users

Community

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What is Newser?