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Tortola Capital Report: J.P. Morgan Posts $4.8 Billion In Profits, Google Fails To Meet Expectations
J.P. Morgan Chase announced its second-quarter net income was just below $5 billion, resulting in a 77 percent upswing, as losses from failed loans alleviate, as Google fails to meet industry estimates, but shares still up from last year.
Morgan Chase beat industry analysts’ profit estimates, but revenue; however, declined nearly 8 percent to just above $25.5 billion. With bad loans down 65 percent, banks like Chase can begin to become stronger and allow them to boost lending to consumers and small businesses.
“With the positive news from J.P. Morgan we may begin to see positive movements towards lending by banks” said Daniel Weiss, a Banking Analyst for Tortola Capital. “So long as these banks use proper lending practices I see no reason for lending to begin again; however, if these banks resort to old practices of bad lending we may find ourselves in the same place again.”
The results did offer a glimpse of hope that loan losses at the U.S.’s largest banks may have met their peak in the first half of the year and with losses peaked and profits in banks may begin to loosen up with loans. J.P. Morgan set aside nearly $4 billion to cover existing bad or troubled loans down 52 percent from the first quarter.
While hopes have been raised that the worst is over, many analysts’ believe there is still an uphill battle to get the U.S. and World economies back to safe levels, and look at loan-loss levels as an indication of how the economic recovery is going. CEO of J.P. Morgan Jamie Dimon stated recently that loan losses overall “remain at extremely high levels.”
In other areas Tortola Capital Reports that Google has missed its Wall Street quarterly profit estimates, something that has not been seen in nearly two years. A rise in expenses set a 24 percent revenue jump off. The internet search engine mammoth stated it earned nearly $1.85 billion which equates to $5.71 a share in the second quarter. While the company may have missed their Wall Street estimates their share price did raise from last year’s $4.66 a share.
“Google has a reached a strong place within the global economy and their stock has reflected it, remaining bullish year in and year out” said Tortola Analyst Jon Baustein. “Google has had a year unlike any other as licensing woes with China were seen, and on the other hand their mobile device platform Android soars making Apple weary”
For more information please visit www.tortolacapital.com or contact James Hurst at + 36 1 1577 2098
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Tortola Capital is focused on providing the most comprehensive and individualized financial planning and services available. As a full service wealth management and brokerage firm, we are able to focus on the needs, aspirations and legacy of each of our clients around the globe. We individually cater services for each client’s situation, and at Tortola Capital it is our goal to understand, anticipate, and meet each client’s changing financial needs with a comprehensive offering of high-quality products and services.
Page Updated Last on: Jul 16, 2010