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JP Morgan surprised the industry


HB DÜSSELDORF. JP Morgan Chase has been run in the third quarter net profit of 4.4 billion dollars (3.2 billion euros), as the U.S. bank announced on Wednesday. This is an increase by 23 percent over the same quarter last year (3.59 billion dollars). They are $ 1.01 per share, considerably more than analysts had expected (0.88 dollars).

Reason for the surprisingly strong jump in earnings is primarily a fall in the number of bad loans and lower loan loss provisions. For bad loans had to JP Morgan still 1.6 billion U.S. dollars return, two-thirds less than a year before. "We look forward to the further decline in our credit costs," said bank chief Jamie Dimon.

He expects, however, that the depreciation on real estate loans remain high in coming quarters, or even increase, depending on economic developments. In the quarter, JP Morgan had to write off loans to customers $ 4,700,000,000. A year earlier the figure was $ 7 billion.

Even in the credit card business was affected by the economic recovery. "We expect to reduce the loan losses in this area in the next quarter yet," said Dimon.

The easing of credit hit but not completely through on net income because the income from continuing operations declined significantly. Compared to the previous year, it fell by 15 percent to 24.3 billion dollars. Reason for this were the reduced interest income due to lower loan volume.

Second, the trading profits were significantly down. Here, the net profit went back once more and the third quarter was $ 1,290,000,000 – $ 1,920,000,000 for the same period last year. This is a drop of 33 percent.

JP Morgan is the first of the major U.S. banks, which are the results for the third quarter of known – and thus gives an idea, what about the sector. Pull the other next week, beginning with Citigroup on Monday.

Experts developed the industry expects a further weaker quarter, especially in terms of the trading business. Including through the acquisition of the ailing investment bank Bear Stearns in March 2008, JP Morgan was one of the greats has gone up in the area. But especially in investment banking is not running this year the industry around. Already in the second quarter, the houses had money in the trading business partly because of the debt crisis in Europe would lose out.

In view of the still ailing U.S. economy and uncertainty about the outcome of congressional elections in the fall, investors held back in the third quarter. Experts therefore expect declining revenues. Analysts have revised their forecasts Starmine about the investment bank Morgan Stanley for almost three-quarters down for Goldman Sachs for more than a quarter.

JP Morgan CEO Dimon has also because of the weak housing market continues to worry about. Uncertainty about the U.S. economy and the continued high unemployment and hold the credit demand low, the industry also is being hit by US-wide investigation against banks for unlawful foreclosures. JP Morgan alone has stopped now so in 23 U.S. states, the evictions.

Another challenge for the institutes, the new banking rules in the U.S., which greatly limit including the proprietary trading of institutions. In addition, banks must adapt as the Basel-III rules the future stringent capital rules.

Meanwhile, the criticism swells high bonuses for U.S. banks again. For, according to a study by the Wall Street Journal "could payment of Wall Street bankers this year reached record highs. The 35 leading companies of the New York financial center will probably pay about 144 billion dollars in salary, bonuses and benefits – that would be four percent more than last year. 26 of the 35 companies surveyed said they want to increase their compensation this year.

Compensation experts criticize the plans. "It is a sign that has not changed much," says Eleanor Bloxham, head of consultancy Corporate Governance Alliance. The pressure from Washington had merely meant that the structure of payments has changed, but not the height. Several companies have a much larger share for 2009 paid in shares instead of cash. "The trend could continue," said Bloxham.