Full-Year 2009 Net Income of $11.7 Billion, or $2.26 Per Share, on Record Revenue1 of $108.6 Billion- Ranked #1 in Global Investment Banking Fees for full-year 2009
- Completed Washington Mutual integration and maintained solid growth in Retail Banking, opening more than 6 million new checking accounts in 2009
- Delivered solid fourth-quarter results in other businesses, including Asset Management and Commercial Banking
- Credit costs remained high: added $1.9 billion to consumer loan loss reserves, resulting in firmwide credit reserves of $32.5 billion and loan loss coverage ratio of 5.5%1
- Balance sheet strengthened further: Tier 1 Capital of $133.0 billion, or 11.1%, and Tier 1 Common1 of $105.3 billion, or 8.8% (estimated), at year-end
- Continued focus on sound lending and efforts to prevent foreclosures:
- Extended more than $600 billion in new credit during 2009 to consumers, corporations, small businesses, municipalities and non-profits (including more than 18 million card, home equity, mortgage, auto and education loans)
- Launched new initiative during the quarter to expand lending to small businesses by up to $4 billion in 2010; adding 325 small-business bankers and 100 middle- market bankers to support increased lending
- Extended offers to modify approximately 600,000 mortgages and approved 120,000 modifications during the year
Jamie Dimon, Chairman and Chief Executive Officer, commented on the results: “We are gratified that we generated earnings of $3.3 billion for the fourth quarter and nearly $12 billion for the year. Though these results showed improvement, we acknowledge that they fell short of both an adequate return on capital and the firm’s earnings potential. We benefited from the diversity of our leading franchises, as demonstrated by the continued earnings strength of our Investment Bank, Commercial Banking, Asset Management and Retail Banking franchises. We are proud that, throughout these tumultuous times, we never stopped investing in the fundamental growth drivers of our consumer businesses – such as checking and credit card accounts in our Retail Banking and Card Services franchises – and have developed new products and services to meet the needs of consumers and small businesses. While we are seeing some stability in delinquencies, consumer credit costs remain high, and weak employment and home prices persist. Accordingly, we remain cautious.”
Editor's Note: Neither their Retail Financial Services nor Card Services divisions had a good fourth quarter, losing $705 million when provisioning for credit losses...
RETAIL FINANCIAL SERVICES (RFS)
| Results for RFS | | | | | 3Q09 | | 4Q08 | |||||||
| ($ millions) | | 4Q09 | | 3Q09 | | 4Q08 | | $ O/(U) | | O/(U) % | | $ O/(U) | | O/(U) % |
| Net Revenue | | $7,669 | | $8,218 | | $8,684 | | ($549) | | (7)% | | ($1,015) | | (12)% |
| Provision for Credit Losses | | 4,229 | | 3,988 | | 3,576 | | 241 | | 6 | | 653 | | 18 |
| Noninterest Expense | | 4,302 | | 4,196 | | 4,046 | | 106 | | 3% | | 256 | | 6% |
| Net Income/(Loss) | | ($399) | | $7 | | $624 | | ($406) | | NM | | ($1,023) | | NM |
CARD SERVICES (CS)(*)
| Results for CS | | | | | 3Q09 | | 4Q08 | |||||||
| ($ millions) | | 4Q09 | | 3Q09 | | 4Q08 | | $ O/(U) | | O/(U) % | | $ O/(U) | | O/(U) % |
| Net Revenue | | $5,148 | | $5,159 | | $4,908 | | ($11) | | -% | | $240 | | 5% |
| Provision for Credit Losses | | 4,239 | | 4,967 | | 3,966 | | (728) | | (15) | | 273 | | 7 |
| Noninterest Expense | | 1,396 | | 1,306 | | 1,489 | | 90 | | 7 | | (93) | | (6) |
| Net Loss | | ($306) | | ($700) | | ($371) | | $394 | | 56% | | $65 | | 18% |
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