Wednesday, October 14, 2009
Morgan Housel :: Townhall.com Columnist
Inside JPMorgan Chase's Earnings
by Morgan Housel
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No surprises here: It was another blowout quarter for JPMorgan Chase (NYSE: JPM), one of only a few surviving banks that's just minting money in the post-Lehman world.

Net income for the third quarter came in at $3.6 billion, or $0.82 per share, on revenue of $28.8 billion. That was up from a profit of $527 million, or $0.09 per share, in the same quarter last year.

As has been the case for a while now, the results were polarized between two divisions: investment banking and traditional lending. Broken down by segment, it's plainly clear where the money is coming from:

Segment

Q3 Net Income

Investment Bank

$1.9 billion

Retail Financial Services

$7 million

Card Services

($700 million)

Commercial Banking

$341 million

Treasury and Securities Services

$302 million

Asset Management

$430 million

Corporate/Private Equity

$1.3 billion

Investment banking and corporate services (essentially trading) are pulling up the slack of still-struggling traditional lending units. What's interesting is to peek inside the investment banking unit:

Investment Banking Segment

Q3 Revenue

Advisory

$384 million

Equity Underwriting

$681 million Continued...

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About The Author

Morgan Housel is a Motley Fool contributor.

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