Wednesday, January 16, 2008
JPMorgan Q3 2007 pre earning cut
--Fourth-quarter net income declined to $2.97 billion, or 86cents a share, from $4.53 billion, or $1.26, a year earlier, the, profi fell short of the 92 cent estimate. profit dropped 34 percent --The company added $2.3 billion to creditreserves, bringing the total to $10 billion. Citigroup Inc., the --revenue up 7% to 17.4 bil --JPMorgan arranged $170 billion of loans used to financeleveraged buyouts in the U.S. last year, more than any bank andrepresenting 16 percent of the market, according to data compiledby Bloomberg. --The company was also the largest underwriter ofU.S. high-yield corporate debt, with $20 billion in 2007. Investment Banking --revenu 3.2 bil, down from 4.9 bil last year a.investment banking fees, 1.7 bil, up 5% * Advisory fees were $646 million, up 34%, and *equity underwriting feeswere $544 million, up 66% *Debt underwriting fees of $467 million declined 39%, reflecting lower loan syndication and bond underwriting fees b.Fixed Income Markets * Fixed Income Markets revenue was $615 million, down $1.4 billion, or 70%, from theprior year. The decrease was due to markdowns of $1.3 billion (net of hedges) on subprime positions, including subprime collateralized debtobligations (CDOs). Fixed Income Markets revenue also decreased due tomarkdowns in securitized products on non-subprime mortgages and lossesin credit trading. These lower results were offset partially by strong c.Equity Markets revenue was $578 million, down 40% from the prior year, as weaker trading results -- Net income at the investment-banking division tumbled 88percent to $124 million in the fourth quarter, as credit-marketturmoil reduced revenue from debt underwriting 39 percent, to$467 million. Fixed-income revenue tumbled 70 percent because ofthe writedown, to $615 million, and ``weaker trading results''contributed to a 40 percent drop in equity market revenue, whichfell to $578 million.