Summary
JPMorgan Chase & Co. (JPM) reported a net income of $449 million for the third quarter of 2001, a significant decrease from $1,398 million in the same quarter of the previous year. Diluted earnings per share also fell to $0.22 from $0.69 year-over-year. The company's revenue declined to $7,349 million from $7,723 million year-over-year, largely impacted by lower investment banking fees and trading revenues, as well as substantial unrealized losses in private equity. Despite the reported decline, the company highlighted operating results which exclude merger and restructuring costs and other special items. On an operating basis, net income was $1,036 million, down from $1,419 million in Q3 2000. Merger and restructuring costs were a significant factor, totaling $876 million in the quarter, with further estimates for future costs. The company also noted ongoing efforts to control expenses and manage risk in a challenging economic environment, exacerbated by the events of September 11th.
Key Highlights
- 1Net income decreased significantly to $449 million ($0.22/share) in Q3 2001 from $1,398 million ($0.69/share) in Q3 2000.
- 2Total revenue for the quarter was $7,349 million, down 5% from $7,723 million in Q3 2000.
- 3Investment Banking Fees and Trading Revenue saw declines, contributing to the overall revenue drop.
- 4Private Equity experienced substantial unrealized losses of $311 million in Q3 2001, compared to $676 million in Q3 2000, impacting overall profitability.
- 5Merger and Restructuring Costs were substantial at $876 million for the quarter, reflecting ongoing integration and business adjustments.
- 6On an 'operating basis' (excluding certain charges), net income was $1,036 million, down 27% from $1,419 million in the prior year's quarter.
- 7Total assets grew to $799.3 billion as of September 30, 2001, an increase from $715.3 billion at year-end 2000, partly due to market disruptions following September 11th.