JPMorgan May Report Record Profit By Dawn Kopecki and Dakin Campbell - Jan 12, 2012 7:57 AM ET
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A pedestrian walks past the JPMorgan Chase & Co. headquarters in New York.
A pedestrian walks past the JPMorgan Chase & Co. headquarters in New York. Photographer: Jin Lee/Bloomberg Opportunity in U.S. Financials, Strategist Says
Jan. 12 (Bloomberg) -- Mark Luschini, chief investment strategist at Philadelphia-based Janney Montgomery Scott LLC, talks about U.S. stocks and investment strategy. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
JPMorgan Chase & Co. (JPM), likely to keep the title of most profitable U.S. bank when it reports earnings tomorrow, has a West Coast rival closing in: Wells Fargo & Co. (WFC)
JPMorgan is projected to report a record $18.5 billion in 2011 earnings when adjusted for one-time items, a 6 percent increase for the New York-based company, according to a survey of analysts by Bloomberg. Profit at San Francisco-based Wells Fargo is estimated to have jumped more than four times as much, to an all-time high of $15.3 billion.
By focusing on the U.S. and eschewing traditional Wall Street businesses such as structured products, Wells Fargo surpassed earnings at Goldman Sachs Group Inc. (GS) and Citigroup Inc. for six consecutive quarters. Wells Fargo, whose $1.3 trillion in assets make it the fourth-largest U.S. bank, also has higher valuations than its bigger peers.
Wells Fargo “never really embraced investment banking as heavily as the Wall Street crowd has,” said Paul Miller, a former examiner for the Federal Reserve Bank of Philadelphia and analyst at FBR Capital Markets in Arlington, Virginia. “I think one of the reasons Wells is where they are right now is because they did not get into that business” in a bigger way, he said.