Jamie Dimon, CEO of JPMorgan Chase (NYES: JPM), says the bank will have "essentially flat" revenues this quarter excluding accounting adjustments. The company's private equity unit also expects to post a "modest loss" in the fourth quarter.
In a presentation on Wednesday, Dimon explained that, thanks to the troubled global economy, corporations delay raising capital and concerned investors are selling riskier assets.
Dimon also announced that JPMorgan may buy back an additional $950 million in stock approved as part of a $15 billion capital-distribution program by the Federal Reserve, according to the presentation (via Bloomberg).
The unit's long-term prospects show promise, Dimon said in the presentation. Global credit needs may expand by about $160 trillion over the next 10 years, and worldwide investment demand may increase from 20% of GDP in 2010 to 25% by 2030, according to the presentation.
The investment bank has a reputation as the "the largest and most profitable U.S. bank" and is "among the only major U.S. lenders to remain profitable throughout the recession."
That outlook may explain why, despite expectations for flat revenue, JPMorgan's stock climbed 2.32% today.
JPMorgan appears to be setting low expectations as a way of weathering against tough times ahead.
We were wondering how insiders of the broader financial sector felt about their profit outlook. To find out, we screened the financial sector for stocks with the highest levels of insider buying over the last six months.
Company insiders such as members of the board and upper management know more about their companies than anyone else, so when they express optimism in purchasing company stock, it's a very bullish development to analysts.
Do you think these companies will weather the storm? (Click here to access free, interactive tools to analyze these ideas.)
1. Sterling Financial
2. Hudson Pacific Properties
3. The Howard Hughes
4. Everest Re Group
5. American International Group
6. Webster Financial
7. Saul Centers
8. Central Pacific Financial
9. Chesapeake Lodging Trust Common Shares of Beneficial Interest
10. Equity One
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Rebecca Lipman does not own any of the shares mentioned above. Insider data sourced from Yahoo! Finance.