Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, April 17, 2009

Article Excerpt

J.P. MORGAN CHASE & CO., $33.26, New York symbol JPM, earned $2.1 billion in the first quarter of this year. That’s down 9.8% from $2.4 billion in the year-earlier quarter. Earnings per share fell 40.3%, to $0.40 from $0.67, on more shares outstanding. Still, the bank’s earnings beat analysts’ forecasts of $0.32 a share. Revenue rose 48.2% during the quarter, to $25 billion from $16.9 billion. Morgan’s purchase of Washington Mutual last September was a big reason for the gain. Because of this, Morgan’s average total deposits rose 62% from the prior year, to $345.8 billion. The number of chequing accounts jumped 126%. As well, Morgan’s investment-banking division posted higher revenue. This was driven in large part by higher fee income from underwriting new bonds, as well as trading gains. The recession continues to weigh on the bank’s loan portfolio. During the quarter, provisions for loan losses rose 94.3%, to $8.6 billion from $4.4 billion a year earlier. (These provisions are…