In his first quarterly conference call since he announced that he was being treated for throat cancer, JPMorgan CEO Jamie Dimon discussed somewhat mixed results for the company. Earnings per share came in 3 cents below Wall Street estimates, but revenues rose to $24.25 billion, 2.0% higher than consensus estimates. While this might seem like a disappointment compared to the bank’s 17 cents earnings beat last quarter, there were many one-time expenses for the company, including $1 billion in ongoing legal expenses. In addition, the company will have to spend more on cybersecurity, since a breach in the internet security system exposed the information of 76 million households and 7 million businesses to hackers.
There were more than a few positives reported in JPM’s earnings, including Common Equity Tier rising to 10.1% from 9.8%, core loans up 7% over the year before, auto originations rising 6% and investment banking fees up 2%. Anthony Ruben of Inflection Point Consulting cites these positives on SeekingAlpha and says he has a ‘Buy’ rating on the stock. He thinks JPM is an undervalued proxy on the domestic economic recovery, and the bank will benefit from rising interest rates.
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Concerning his illness, CFO Marianne Lake said Dimon has been “shockingly present” while undergoing treatment. Dimon announced in July, “The company is ready for any scenario.”