JP Morgan Misses Estimates

by Darren

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When Citigroup has already announced $12 billion in writedowns, you could almost be assured it would be a tough quarter for JP Morgan, the nation’s third largest bank. In fact, JP Morgan had a worse than expected quarter, continuing the trend for big banks, but is still running ahead of rivals.

The nation’s third-largest bank saw profits fall by 34% to $2.97 billion from $4.53 billion during the same period a year ago. On a per-share basis, JPMorgan earned 86 cents a share, while analysts polled by Bloomberg and Thomson Financial had estimated that the firm would see net income about 6 cents higher.

Compared with its rivals, JPMorgan has dodged many of the subprime bullets that have forced others to turn to foreign and domestic investors to buffet their cash-strapped businesses.

Despite the down quarter, JPM has avoided many of the pitfalls that have waylaid their competitors, and the company did turn a hefty profit. JPM even had a slight increase in overall revenue, so they have performed much better than many of their peers.

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