JPMorgan Chase is the latest US financial giant to report a significant Q4 sub-prime hit, marking down $1.3bn in the period.
The write-down led to the bank’s Q4 income dipping to £3bn last year, down 21% on the same period in 2006. However, its 2007 full-year income was a record $15.4bn, up 15% on the previous year.
JPMorgan Chase’s chairman and CEO Jamie Dimon says he is pleased with the company’s results, despite the mixed Q4 performance.
“Our consumer home equity and subprime loan portfolios performed worse than we expected,” he says. “The diversified nature of our company helped offset areas of weakness.”
Dimon says the firm is cautious about the prospects for 2008.
“If the economy weakens substantially from here – for which, as a company, we need to be prepared – it will negatively affect business volumes and drive credit costs higher,” he says.
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