Newly merged US bank holding company JP Morgan said today its operating profits dropped 65 per cent in the fourth quarter, hurt by losses on investments, higher costs, and a slump in trading revenues.
The bank, formed after Chase Manhattan bought JP Morgan & Co. late last year, posted operating profits of $763 million, or 37 cents a share, in the quarter.
Wall Street expected the bank to earn 45 cents a share in the quarter, according to First Call/Thomson Financial, which tracks analysts' consensus estimates.
Including $1.25 billion in merger-related charges and $1.23 billion in one-time gains, the bank earned $708 million, or 34 cents a share, compared with pro-forma $2.20 billion, or $1.10, in the year-ago quarter.
Our results were obviously lower than we would have liked, driven largely by the differential in the rate of growth of revenue and of expenses, Mr Marc Shapiro, JP Morgan Chase vice chairman, told reporters on a conference call.
Its stock dropped 11/16 to $52-1/2 on Wednesday on the New York Stock Exchange.
Reuters