J.P. Morgan Chase & Co. (NYSE: JPM) today
reported first-quarter 2009 net income of $2.1 billion and a revenue of $26.9 billion. Not surprisingly the net income is slightly down from last year's net income of $2.4 billion in the first quarter of 2008, but it's better than what
analysts expected. Bank of America Corp. analyst Guy Moszkowski
started off questions on the webcast. He asked about TARP and JP Morgan's plan to repay TARP now that Goldman Sachs Group Inc. (NYSE:GS)
got the ball rolling.
CEO Jamie Dimon responded, "We have been consistent we would like to repay TARP as soon as possible. We are in a pretty strong position... and we don't think we need more capital so we will await results from
the stress test. I don't think we would need to do an equity raise. I
don't see why a company with that kind of capital would need to raise
capital. What Goldman did is what Goldman did. It has nothing to do with us."
Here's a summery of the results for the quarter:
- JPMorgan's investment bank reported profit of $1.6 billion, up from a
loss of $87 million a year earlier.
- Washington Mutual integration on track, driving Retail Banking growth in deposits by 62% and in checking accounts by 126%
- - Net assets under management inflows of $119 billion over the past year in Asset Management •
- Fortress balance sheet strengthened further: - Tier 1 Capital of $137.2 billion, 11.3% Tier 1 Capital ratio (9.2% excluding TARP capital)
- $87.2 billion of tangible common equity1, 7.2% of risk-weighted assets
- Added $4.2 billion to credit reserves, bringing total to $28.0 billion, and firmwide loan loss coverage ratio to 4.53%2 as of March 31, 2009
- Extended approximately $150 billion in new credit to an estimated 4.5 million consumers (through credit cards, mortgages, auto and student loans), and to small and mid-sized businesses and large corporations
- Purchased nearly $34 billion of mortgage-backed and asset-backed securities
- Prevented almost 150,000 loan foreclosures since October 2008, bringing the total to over 400,000 since early 2007; opened the remaining 22 of our 24 new Chase Homeownership Centers and added over 650 loan counselors during the quarter
- Maria Woehr
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