1Q EARNINGS: JPM Chase Data Offers Some Signs for Industry; Regionals Losing Loan Share; Harbinger for Investment Banking

By Monks, Matthew | American Banker, April 17, 2009 | Go to article overview

1Q EARNINGS: JPM Chase Data Offers Some Signs for Industry; Regionals Losing Loan Share; Harbinger for Investment Banking


Monks, Matthew, American Banker


Byline: Matthew Monks

Though many focused on the upside earnings surprise in JPMorgan Chase & Co.'s first-quarter profit report, just as noteworthy, and perhaps more so, were the apparent gains in market share on both sides of its balance sheet.

The New York company said Thursday that it extended $150 billion of credit to 4.5 million customers in the first quarter. It noted a surge in mortgage originations and automotive lending. In the fourth quarter the company made more than $100 billion of loans.

The first-quarter total was "a huge amount of money," James Dimon, JPMorgan Chase's chairman and chief executive, said in a conference call Thursday with reporters. "I think one of the huge misperceptions out there is that banks aren't lending" during the recession.

Gary B. Townsend, the CEO of Hill-Townsend Capital LLC, said the loan growth indicates that the company is stepping in to fill a void vacated by reeling regional banks and alternative loan providers like hedge funds.

"The loan numbers are impressive in the context of an economy that shrank in the first quarter," Townsend said. JPMorgan Chase is using its "heft to elbow out" rival lenders.

On the retail side, it said its consolidation of Washington Mutual Inc. was "on track." The purchase of the failed thrift's banking operations last year helped drive JPMorgan Chase's financial services division to a profit of $474 million in the quarter, compared with a $311 million loss a year earlier.

Average deposits in the retail bank rose 2% from the fourth quarter and 62% from a year earlier, to $345.8 billion. The growth from a year earlier was largely a result of the Wamu acquisition.

William Fitzpatrick, an analyst with Optique Capital Management in Milwaukee, said the 2% growth was impressive, given the heated competition for deposits.

"It's a great opportunity to be scooping up market share," he said. "The growth in deposits is very encouraging. That would suggest that they are taking share from their more challenged competitors."

Dimon said JPMorgan Chase's lending ability would not be hampered if it were granted permission to pay back the $25 billion it took from the Treasury Department last year - something the company would like to do "as soon as possible." Repaying the funds would not affect the company's capital ratios, he said, and it would not need to raise capital to close the deal.

"Obviously, we're waiting for guidance from the government," Dimon said. "Folks, it has become a scarlet letter."

The stigma of federal aid is one reason JPMorgan Chase plans to opt out of the burgeoning Public-Private Investment Program, in which private investors will purchase troubled assets with federal loans. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

1Q EARNINGS: JPM Chase Data Offers Some Signs for Industry; Regionals Losing Loan Share; Harbinger for Investment Banking
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.