JPMorgan’s retail-focused sub-segment declined in the 4Q

Saul Perez
0

An investor's guide to JPMorgan Chase's 4Q results (Part 6 of 14)

(Continued from Part 5)

JPMorgan’s second largest sub-segment

In the Consumer & Community Banking segment, the Card, Merchant & Auto sub-segment provides credit card, merchant payment systems, and auto loans to a wide variety of clients. It’s largely driven by retail clients. This is a big sub-segment for JPMorgan Chase & Co. (JPM).

Through this sub-segment, JPMorgan is also able to reach a large part of the market. JPMorgan is able to reach out to customers that don’t have a long association with the bank.

This sub-segment is the second largest sub-segment in JPMorgan’s Consumer & Community Banking segment. JPMorgan is very strong in this sub-segment. Wells Fargo (WFC) and Citibank (C) are way behind JPMorgan. Only Bank of America (BAC) is able to provide tough competition to JPMorgan in this sub-segment. All of these banks are part of the Financial Select Sector SPDR (XLF).

Segment’s results were mild

In this sub-segment, JPMorgan’s net revenue was $4.5 billion. This was a modest decline of 4%—compared to the same quarter in 2013. This was mainly due to JPMorgan exiting a few non-core products. Out of the total net revenue, the net interest income was $3.4 billion. This was an increase of nearly 2%—compared to the same quarter last year. Non-interest revenue was $1.1 billion. This was a decline of nearly 20%—compared to the same quarter last year. This sharp fall was driven by exits from some products in the portfolio.

On the bottom line, JPMorgan’s net income was $980 billion in the fourth quarter. This was a fall of 7%—compared to the same quarter in 2013. As a result, this sub-segment was the highest profit-earning sub-segment in the Consumer & Community Banking segment. It was also a sub-segment with high return. It had a return on equity of 20% on an allocated average capital of $19 billion.

Continue to Part 7

Browse this series on Market Realist:

Advertisement

Recommended Stories

  • Dow Jones Falls As Donald Trump Stock Craters; Cathie Wood Buys This Stock Amid 51% Plunge

    The Dow Jones fell as Elon Musk made a Tesla move. The Donald Trump stock sank on the stock market today. Cathie Wood bought a diving stock.

  • Stock Selloff Spreads as Middle East Tension Rises: Markets Wrap

    (Bloomberg) -- European stocks tumbled, following a selloff in Asia and on Wall Street that was sparked by angst over elevated US interest rates and fueled by signs of fading momentum in China’s economy and rising tensions in the Middle East.Most Read from BloombergBeyond the Ivies: Surprise Winners in the List of Colleges With the Highest ROITrump Media’s $5.3 Billion Selloff Deepens as 270% Rally FizzlesS&P 500 Breaks Below 5,100 as Big Tech Sells Off: Markets WrapIran’s Attack on Israel Spark

  • Trump Media stock tanks on move to issue millions of shares

    Trump Media stock slid as much as 16% on Monday after the parent company of Donald Trump's social media platform, Truth Social, filed to issue more than 21 million shares.

  • Nvidia Reveals 8 'Secrets' For When To Sell Stocks. No. 2 Is Key.

    As top growth stocks like Nvidia test key moving averages, keep in mind these proven rules for when to sell stocks.

  • 4 Oversold Stocks to Buy Right Now

    Here are four stocks to buy now that could offer investors upside in the short and long term.

  • Elon Musk Agrees With Jamie Dimon's Warning Of Political Polarization 'Creating Risks That Could Eclipse Anything Since World War II'

    JP Morgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon's annual shareholder letter is a moment investors await to understand the thinking of one of the world's most influential bankers. While there has been speculation of Dimon entering politics, with him even gaining the support of billionaire hedge fund manager Bill Ackman to run for president, JP Morgan shared in a statement that "Jamie has no plans to run for office" and that "he is very happy in his current role." That has not stopped him from oc

  • Tesla layoffs hit high performers, some departments slashed, sources say

    Tesla management told employees Monday that the recent layoffs -- which gutted some departments by 20% and even hit high performers -- were largely due to poor financial performance, a source familiar with the matter told TechCrunch. The layoffs were announced to staff just a week before Tesla is scheduled to report its first-quarter earnings. The move comes as Tesla has seen its profit margin narrow over the past several quarters, the result of an EV price war that has persisted for at least a year.

  • Dow Jones Futures: Another Ugly Market Reversal; Nvidia Skids, Tesla Tumbles On 'Dark Day'

    Mideast fears and surging yields triggered another ugly market reversal. Nvidia and Microsoft fell while Tesla dived.

  • Bitcoin Halving May Lead to Some Sales, Crypto.com CEO Says

    (Bloomberg) -- Bitcoin selling may become evident as the date of the so-called halving nears but the event is set to bolster the price of the largest digital asset longer term, according to the head of the Crypto.com exchange.Most Read from BloombergBeyond the Ivies: Surprise Winners in the List of Colleges With the Highest ROITrump Media’s $5.3 Billion Selloff Deepens as 270% Rally FizzlesS&P 500 Breaks Below 5,100 as Big Tech Sells Off: Markets WrapIran’s Attack on Israel Sparks Race to Avert

  • BlackRock’s Kapito Says Stocks Are Primed for a Comeback

    (Bloomberg) -- BlackRock Inc.’s Robert Kapito says the stock market is poised to benefit as investors deploy their outsized holdings of cash.Most Read from BloombergBeyond the Ivies: Surprise Winners in the List of Colleges With the Highest ROITrump Media’s $5.3 Billion Selloff Deepens as 270% Rally FizzlesS&P 500 Breaks Below 5,100 as Big Tech Sells Off: Markets WrapIran’s Attack on Israel Sparks Race to Avert a Full-Blown WarApple Faces Worst iPhone Slump Since Covid as Rivals RiseThere’s almo