Canary Dimon

15 January 2010 By Antony Currie Follow @AntonyMCurrie

Investment bank revenue fell by a third in Q4, the retail side suffered a surprise hit on mortgages and credit cards are set to lose $2 bln by June. Boss Jamie Dimon can probably find ways to keep earning. But if JPMorgan s road is this rocky, imagine the path for lesser banks.

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JPMorgan Chase reported fourthquarter earnings of $3.3 billion, or 74 cents a share, beating consensus estimates of 61 cents a share. Earnings were 9 percent lower than the third quarter and revenue was 13 percent lower.

Net income at the investment bank was flat from the previous quarter but revenue fell by a third, largely the result of fixed income trading falling 45 percent to $2.7 billion as spreads narrowed and as business slowed considerably in December.

Retail banking recorded a net loss of $399 million thanks to lower loan balances, lower income from mortgage servicing rights and an increase in reserves for repurchasing previously sold loans. Credit loss provisions, at $4.2 billion, were $241 million higher than the third quarter and included a $491 million increase related to estimated deterioration in creditimpaired mortgages taken on with the Washington Mutual acquisition.

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