J.P. Morgan Profit Falls 23% on Investment-Banking Hit |
| Wall Street Journal - Jan 13, 2012 |
J.P. Morgan Chase & Co. reported a 23% drop in fourth-quarter profit, the result of another weak quarter for investment-banking operations, though executives touted loan growth as a sign of an improving economy and the bank closed out a record year for profits.
The quarter marked a shift from recent years, as the investment-banking results took a back seat to the more traditional lending operations. As European stresses sapped energy out of global markets and clients, the investment bank lost its place as the biggest profit center for the nation's biggest bank.
Taking its spot was the unit that lends to consumers for credit cards and automobiles, where loans surged and delinquencies dropped. Combined with broader business lending, and despite continued weakness in mortgages, the bank's results signal the U.S. economy is showing more signs of growth even amid the global turbulence.
Chief Executive James Dimon told reporters to "forget about trading" weakness and that he doesn't think any less of the investment-banking unit after its 30% drop in revenue. He said investment banking isn't "a mystical thing" and will come back again.
Read Full Article from Wall Street Journal
- Posted: 2012-01-13 11:38:13
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