JPMorgan was the first major US bank to report their Q4 2009 results. Profits came in at 74 cents a share, beating expectations of 61 cents. Revenue on the other hand was $25.2 billion, short of the $26.8 billion expectations.
Despite the profitable results, traders seem focused on consumer credit losses by the bank and the money they have set aside for it. JPMorgan has a cautious outlook for 2010. JPMorgan performed better than most other large US banks during the credit crash, so if they are continuing to have consumer credit losses and a cautious outlook, it’s likely others will have the same and potentially miss their earnings targets.
The S&P has tumbled this morning, but is currently still above the low for the week. The USD and JPY have gained.
Also on the minds of traders is the new bank tax Obama announced yesterday. It will target large banks that had to be bailed out, despite the fact that most have already paid back their loans with interest. JPMorgan is reportedly going to be hit harder than other banks by this tax.
