Summary
JPMorgan Chase & Co. (JPM) reported a net loss of $387 million, or ($0.20) per share, for the fourth quarter of 2002. This contrasts with a modest net income of $40 million in the third quarter of 2002 and a net loss of $332 million in the prior year's fourth quarter. The reported loss was significantly impacted by substantial charges related to the settlement of Enron surety litigation and the establishment of a litigation reserve for other material proceedings. Excluding these one-time charges totaling $1.30 billion ($0.43 per share) and merger and relocation costs of $393 million ($0.13 per share), the company's adjusted earnings for the fourth quarter would have been $0.36 per share, aligning with previously issued guidance. For the full fiscal year 2002, net income was $1.66 billion ($0.80 per share), a slight decrease from $1.69 billion ($0.80 per share) in 2001. Investors should note the significant impact of litigation and restructuring costs on the quarterly results, while also considering the underlying operational performance when adjusted for these items.
Key Highlights
- 1Reported a net loss of $387 million ($0.20 per share) for Q4 2002.
- 2Q4 2002 results were heavily impacted by $1.30 billion in charges for Enron surety litigation settlement and litigation reserves.
- 3Additional charges of $393 million for merger and relocation costs also affected Q4 2002 earnings.
- 4Adjusted for these charges, Q4 2002 earnings would have been $0.36 per share, meeting prior guidance.
- 5Full-year 2002 net income was $1.66 billion ($0.80 per share), slightly down from $1.69 billion ($0.80 per share) in 2001.
- 6The filing includes exhibits such as the Q4 2002 earnings press release, supplemental financial schedules, and investor presentation slides.