| Production Down From 2001 at JPMorgan
Net income tumbles October 18, 2002 By MortgageDaily.com staff |
| JP Morgan Chase & Co. reported a healthy increase in originations from the prior quarter, but earnings and year-over-year production fell.
The company ended the third quarter with $35.4 billion in originations, a 34% jump from second quarter’s $26.5 billion, the company’s financial supplement said. The third quarter figure represents a 25% decrease from third quarter 2001. The average of loans owned during this year’s third quarter totaled $54.2 billion, a modest improvement from last quarter’s $54.1 billion, but a 5% dip from last year’s $57 billion, the company reported. JP Morgan showed improvement in the loan servicing department this quarter, reporting $434 billion over second quarter’s $436 billion and last year’s $427 billion. The company reported holding steady with its number of home finance customers since last year, with only a slim decrease — 4 million during the third quarter, compared with 4.1 million in the second quarter and 4.1 million last year. “While the strength reflected in our retail and operating services businesses is a major positive, our performance in the aggregate is very disappointing,” said William B. Harrison, Jr., chairman and chief executive officer. “As a management team and as shareholders, we are committed to this firm realizing its earnings potential over the longer term.” Net income for the banking giant was $40 million, down from $449 million during the same period last year and more than a billion dollars in the second quarter. JP Morgan attributed the poor earnings performance to higher credit costs and lower trading results. Late Thursday afternoon, shares of JPMorgan were trading at $19, up 71 cents, according to the Wall Street Journal. |
