Earnings Analysis - JPMorgan Chase

LONDON, January 20, 2015 /PRNewswire/ --

Investor-Edge.com has issued free earnings analysis on JPMorgan Chase & Co. (NYSE: JPM). On January 14, 2015, the company announced its Q4 FY14 and full-year FY14 financial results (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=JPMorgan%20Chase&d=20-Jan-2015&s=JPM to read our free earnings review on JPMorgan Chase & Co. (JPMorgan). The company's net revenue fell by 2% Y-o-Y both for the reported quarter and full-year FY14. JPMorgan's return on tangible common equity in Q4 FY14 and FY14 stood at 11% and 13%, respectively. Chairman and CEO Jamie Dimon said that JPMorgan's businesses continue to demonstrate strong momentum and expense discipline. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=JPMorgan%20Chase&d=20-Jan-2015&s=JPM

Earnings Overview 

During Q4 FY14, JPMorgan reported net revenue of $23.55 billion compared to $24.11 billion in Q4 FY13. The company's net revenue in Q4 FY14 came slightly below Bloomberg analysts' forecast of $24.08 billion. JPMorgan recorded net income of $4.93 billion, or $1.19 per diluted share, as compared to net income of $5.28 billion, or $1.30 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected net income of $5.00 billion, or $1.31 per diluted share, in Q4 FY14. JPMorgan's core loans increased 8% Y-o-Y in Q4 FY14. The free research on JPM can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=JPMorgan%20Chase&d=20-Jan-2015&s=JPM

For FY14, the company reported net revenue of $97.92 billion compared to $99.80 billion in FY13. JPMorgan's net revenue for FY14 came below the Bloomberg analysts' forecast of $98.50 billion. In FY14, the company reported record net income of $21.76 billion, or $5.29 per diluted share, as compared to net income of $17.92 billion, or $4.35 per diluted share, in FY13. Bloomberg analysts had expected net income of $20.56 billion, or $5.42 per diluted share, in FY14. JPMorgan returned approximately $3 billion of capital to shareholders in Q4 FY14 and $10 billion in FY14.

As of December 31, 2014, JPMorgan's Basel III Tier 1 common equity ratio was 10.1%. Further, the company had strong liquidity, compliant with the final U.S. Liquidity Coverage Ratio (LCR) and High Quality Liquid Assets (HQLA) of $626 billion. Additionally, JPMorgan's Supplementary Leverage Ratio (SLR) was 5.6% and its Bank SLR was 5.9%. Sign up and read the free analyst's notes on JPM at:

http://get.Investor-Edge.com/pdf/?c=JPMorgan%20Chase&d=20-Jan-2015&s=JPM

Commenting on the financial results, Mr. Dimon stated that the company's Consumer & Community Banking segment delivered an impressive growth in deposits and investment assets in Q4 FY14 and FY14, outperforming expense reduction target for FY14. He said that despite a seasonally slow quarter, mortgage originations improved sequentially during Q4 FY14. He also informed that JPMorgan's Card business delivered double-digit sales volume growth, outpacing the industry for the 27^th consecutive quarter.

He added that JPMorgan's Corporate & Investment Bank saw strong performance in fees, maintaining its #1 position in Global IB fees in 2014 with particular strength in Europe, although Markets remained somewhat challenged. He further informed that Commercial Banking grew period-end loans 8% versus the prior year and Commercial Banking clients generated record investment banking revenues for the quarter and the year. Lastly, he said that Asset Management had over $80 billion of net long-term inflows for the second consecutive year and overall AUM grew 9% this quarter compared to Q4 FY13. Visit Investor-Edge and access the latest research on JPM at:

http://get.Investor-Edge.com/pdf/?c=JPMorgan%20Chase&d=20-Jan-2015&s=JPM

Stock Performance 

On the day of the earnings release, January 14, 2015, JPMorgan's stock ended the session at $56.81, down 3.45%. However, on the last close, Friday, January 16, 2015, the company's stock finished at $55.93, up 1.71%. The stock vacillated between $54.64 and $56.00 during the session. A total of 29.37 million shares were traded which was much above its three months average volume of 16.05 million shares. Over the previous three trading sessions and last one month, the company's shares have lost 4.95% and 6.42%, respectively. Further, the stock has fallen by 3.75% in the past one year. Shares in JPMorgan are trading below their 50-day and 200-day moving averages of $60.62 and $58.30, respectively. Additionally, the stock traded at a PE ratio of 9.44 and has a Relative Strength Index (RSI) of 32.51.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 30 insider transactions made by 19 individuals. Between December 31, 2014 and January 15, 2015, a total of 617,202 shares have been purchased at an average price of $37.82 per share, and for a total value of $23.34 million. During the same period, a total of 1.18 million shares, worth $67.56 million, were sold at an average price of $57.29 per share. These are some of the transactions during the stated period: Jamie Dimon bought 600,481 shares at a price of $37.47 per share and disposed of 665,671 shares at an average price of $56.35. Matthew E. Zames, Chief Operating Officer at JPMorgan, sold 131,697 shares at an average price of $58.55. Additionally, on January 13, 2015, Mary Callahan Erdoes, Asset Management CEO at JPMorgan, sold 96,900 shares at a price of $59.04. Complimentary in-depth research on JPM is available at:

http://get.Investor-Edge.com/pdf/?c=JPMorgan%20Chase&d=20-Jan-2015&s=JPM

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