You need serious courage to jump into bank stocks these days. Real estate, derivatives, CDOs, auction rate securities, bank runs ... the list of potential boogeymen is lengthy. These companies basically have nothing going in their favor right now.
Many investors see no light at the end of this particular tunnel. But some banks never ventured into the tunnel in the first place. Although it's hardly unscathed, JPMorgan Chase
Here are some quick numbers that should prove beneficial when analyzing the House of Morgan.
|
Metric |
Trailing 12 months |
|---|---|
|
Total revenue |
$68.8 billion |
|
Total net income |
$10.7 billion |
|
Net income per share |
$3.05 |
|
Dividends paid per share |
$1.52 |
|
Current share price* |
$38 |
*As of Aug. 14, 2008.
In 1907, J.P. Morgan (the man) single-handedly stepped in to avert an all-out financial crisis. Just more than a century later, JPMorgan (the company) stepped in to avert another pandemonium by adopting Bear Stearns. Since it paid just a token fee for Bear, and it has the Federal Reserve financing the riskiest loans, the potential upside for JPMorgan is enormous. Merely integrating a few choice assets, like Bear's prime brokerage unit and the rolodexes of some of its coveted investment bankers, could be worth a fortune.
|
Metric |
Most recent quarter |
|---|---|
|
Return on assets |
0.48% |
|
Return on equity |
6% |
|
Net interest margin |
2.63% |
|
Nonperforming loans to average loans |
0.32% |
|
Tier 1 capital ratio |
9.1% |
|
Book value per share |
$37.02 |
Another wild card is how JPMorgan Chase navigate the treacherous real estate market. Earlier this year, it made a failed attempt to acquire Washington Mutual
JPMorgan has not only proved it can withstand the credit crisis, but that it's destined to capitalize on it like no other. Bear Stearns' acquisition allows it close the investment banking gap with Goldman Sachs
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