Earnings Reports for Jan. 18

Wall Street expected the bank to earn 45 cents a share in the quarter, according to First Call/Thomson Financial, which tracks analysts' consensus estimates.

J.P. Morgan Chase, which ranks among the top U.S. banks with more than $705 billion in assets, warned last month its fourth-quarter profits would be substantially below Wall Street estimates because of weak trading revenues, higher costs and losses on investments.

A string of interest rate increases by the Federal Reserve last year hurt demand for new bond offerings in the quarter and contributed to a stock market slump that ate into revenues at banks' investment and trading operations.

J.P. Morgan Chase's stock closed at $53-3/16 on Tuesday on the New York Stock Exchange.

J.P. Morgan Chase said trading revenues fell to $1.27 billion in the fourth quarter, compared with $1.48 billion a year ago, mostly due to the impact of widening credit spreads on bond markets, while operating revenues at its investment bank rose 20 percent to $3.67 billion, helped by acquisitions.

J.P. Morgan Partners, the bank's investments arm, posted losses of $92 million, compared with a gain of $1.62 billion a year ago. The losses came as the technology-laden Nasdaq composite index last year posted the poorest performance in its history.

The bank also said in a statement it has set long-term goals of 10 percent - 12 percent annual revenue growth, cash earnings per share growth of 15 percent a year, and an average cash return on equity of 20 percent - 25 percent.


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