We are downgrading our rating on JPMorgan Chase (JPM) shares to Underperform.
Fourth quarter earnings were well ahead of the Zacks Consensus Estimate, aided by better-than-expected results at its Investment Bank segment. However, persistent high levels of consumer credit costs and increased provisions for credit losses were among the major negatives.
While we anticipate continued synergies from the company’s diversification and strong capital position, we believe increasing provisions and a pressured credit quality will drag down future earnings.Zacks Investment Research
