Home / Business / UPDATE 4-JPMorgan distinction beats estimates as taxation check and losses fall

UPDATE 4-JPMorgan distinction beats estimates as taxation check and losses fall


* 2nd-qtr EPS $1.54 vs est $1.44

* Non-interest losses dump 6 pct

* Income taxation responsibility falls 13 pct

* Shares arise 0.7 pct

(Adds CFO’s quote, details, updates shares)

By Sweta Singh and Richa Naidu

July 14 (Reuters) – JPMorgan Chase Co, kicking off
the second-quarter gain deteriorate for U.S. banks, reported a
stronger-than-expected arise in distinction on Tuesday, helped by a
drop in authorised and restructuring losses and a smaller taxation bill.

Like other banks, a biggest U.S. lender by resources has been
under vigour to cut costs since low seductiveness rates have
weighed on income for distant longer than expected.

At a same time, regulators have demanded that banks hold
more collateral and sinecure additional staff to control risks and
comply with new regulations.

JPMorgan’s non-interest losses fell 6 percent to $14.50
billion in a quarter, helped by efforts to streamline its
business as good as reduce authorised and debt banking expenses.

Legal losses fell 57 percent to $291 million.

The bank paid an effective taxation rate of 25 percent, down from
30 percent in a same entertain final year, as a taxation bill
dropped 13 percent to $2.81 billion.

That helped net income attributable to common shareholders
rise to $5.78 billion, or $1.54 per share, from $5.57 billion,
or $1.46 per share, a year earlier.

Analysts on normal had approaching gain of $1.44 per
share, according to Thomson Reuters I/B/E/S.

But net income fell 3.2 percent to $24.53 billion, largely
due to a tumble in income from debt banking and fixed-income
trading.

“Their kick was especially driven by a lower-than-expected tax
rate, and if we hold their taxation rate constant, a entertain is
not as good as it looks,” FBR researcher Paul Miller said.

JPMorgan’s shares were adult 0.7 percent during $68.57 in morning
trading.

BOND MARKET DRAGS

Revenue from a bank’s fixed-income business fell 21
percent to $2.93 billion. Adjusted for a sale of a physical
commodities business and other changes, income from
fixed-income trade would have depressed 10 percent.

Many banks are approaching to news underwhelming bond trading
results due to a downturn in bond trade markets in June.

Investor worries spanned a creation final quarter, ranging
from a Greek debt predicament to concerns that a U.S. Federal
Reserve would not be means to lift seductiveness rates this year.

“The entertain was dominated by EMEA with a bond selloff and
economic and domestic uncertainty, including Greece,” Chief
Financial Officer Marianne Lake pronounced on a call with analysts.

“This doubt slowed a movement we saw in a first
quarter and kept clients on a sidelines in currencies and
emerging markets.”

JPMorgan pronounced a lapse on discernible common equity, a key
measure of distinction performance, was unvaried from a year earlier
at 14 percent. The company’s longer-term aim is 15 percent.

The bank’s net seductiveness margin, an critical part of
profitability that is being closely watched in this quarter’s
bank reports, fell to 2.09 percent from 2.19 percent. Net
interest domain represents a disproportion between a bank’s cost
of supports and a yields perceived from loans and securities.

Total resources stood during $2.45 trillion during a finish of June,
compared with $2.58 trillion during a finish of March.

JPMorgan, a second largest U.S. debt lender after
Wells Fargo Co according to Inside Mortgage Finance,
said debt banking income fell 20 percent to $584 million.

The bank done $29.3 billion of home loans, an boost of 74
percent, though income was strike by heated competition.

Wells Fargo, that also reported on Tuesday, pronounced its
mortgage banking income fell 1 percent to $1.71 billion.

The bank’s altogether distinction also fell for a second quarter
in a row.

(Reporting by Sweta Singh and Richa Naidu in Bengaluru, David
Henry in New York; Editing by Ted Kerr)

Article source: http://www.reuters.com/article/2015/07/14/jpmorgan-results-idUSL4N0ZU3WR20150714

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