J.P. Morgan 3rd-Qtr Profit Falls 91% on Bad Loans (Update1)
By Michael Nol
New York, Oct. 16 (Bloomberg) -- J.P. Morgan Chase & Co., the second-biggest U.S. bank, said third-quarter profit fell 91 percent on a surge of bad loans and tumbling trading revenue.
Net income fell to $40 million, or 1 cent a share, from $449 million, or 22 cents, a year earlier. The bank last month said results would fall ``well below'' the 58 cents a share in operating profit earned in the second quarter.
J.P. Morgan Chase said it will cut more than 2000 jobs. The company wrote off $834 million of bad loans to companies, more than four times the amount in the year-ago period.
Chief Executive Officer William Harrison has overseen only one quarter of profit growth since he formed the bank through a merger two years ago. The world's biggest arranger of syndicated loans has been hit by Enron Corp.'s collapse, Argentina's debt default and the collapse of telecommunications and cable companies. Investment banking revenue also has dropped amid a global decline in initial share sales and mergers and advisory business.
``We'd like to see some quarters that are free of these one- time events,'' Michael Morris, who helps manage about $80 billion of assets at Delaware Investment Advisers and holds J.P. Morgan shares, said before the announcement. ``The environment has been so bad for them.''
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By Michael Nol
New York, Oct. 16 (Bloomberg) -- J.P. Morgan Chase & Co., the second-biggest U.S. bank, said third-quarter profit fell 91 percent on a surge of bad loans and tumbling trading revenue.
Net income fell to $40 million, or 1 cent a share, from $449 million, or 22 cents, a year earlier. The bank last month said results would fall ``well below'' the 58 cents a share in operating profit earned in the second quarter.
J.P. Morgan Chase said it will cut more than 2000 jobs. The company wrote off $834 million of bad loans to companies, more than four times the amount in the year-ago period.
Chief Executive Officer William Harrison has overseen only one quarter of profit growth since he formed the bank through a merger two years ago. The world's biggest arranger of syndicated loans has been hit by Enron Corp.'s collapse, Argentina's debt default and the collapse of telecommunications and cable companies. Investment banking revenue also has dropped amid a global decline in initial share sales and mergers and advisory business.
``We'd like to see some quarters that are free of these one- time events,'' Michael Morris, who helps manage about $80 billion of assets at Delaware Investment Advisers and holds J.P. Morgan shares, said before the announcement. ``The environment has been so bad for them.''
tolles Ergebnis...da kann die Rally ja weitergehen...
mfg
füxlein
