Dallas, Texas 04/15/2014 (FINANCIALSTRENDS) – JPMorgan Chase & Co. (NYSE:JPM) reported a steep drop in its first quarter 2014 profits when it announced its quarter results on 11th April. The banking bell weather disclosed that the 20 percent dip in profits was caused due to the revenue decline it faced from its banking and mortgage business units.
Providing his insights into the banks latest result JPMorgan Chase & Co. (NYSE:JPM) Chairman of the Board, President, Chief Executive Officer James L. Dimon has been quoted to have said that, “I look at it as doing fine, it’s just not that predictable a business. There’s nothing wrong with that, you just have to deal with it over time.” The CEO went on to stress that given the depressed market conditions, business booked by the bank was in line with his expectations.
Net income in the reporting quarter came in at $4.9 billion, which was well below the $6.1 billion it had brought in during 1Q12. Earnings per share came in at $1.28 which was well below the analyst expectation of $1.39 per share. Revenue for the quarter came in at $23.8 billion, which was a disappointing 8 percent dip over its same quarter last year’s $25.8 billion. One of the biggest laggards in terms of revenue contribution was the bank’s fixed income unit, which recorded a huge 21 percent dip to bring in only $3.8 billion into the bank’s coffers.
JPMorgan Chase & Co. (NYSE:JPM) also singled out its mortgage business as being one of the other business units which saw a huge dip in revenue. It linked the dip to the increase in the mortgage rates in the economy today. Revenue from this unit came in at $1.6 billion for the quarter, which was $1.1 billion below its 1Q13 numbers.
Providing a bleak outlook, the banks CFO went on to estimate that the broader depressed trends in the economy would be constant over the near term.
