J.P. Morgan 4Q Profit Beats; Dimon's Bonus Halved
J.P. Morgan Chase (NYSE:JPM) reported stronger-than-expected fourth-quarter earnings on Wednesday but halved CEO Jamie Dimon's bonus after a task force called the London Whale trading debacle a “serious mistake” by the firm.
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The New York-based bank, which released the results of an internal investigation into the second-quarter trading scandal on Wednesday, said it earned $5.7 billion last quarter, or $1.39 a share, up 53% compared with a year-earlier $3.7 billion, or 90 cents.
The results, driven by increased mortgage lending and a decline in bad loans, topped average analyst estimates of $1.16 a share in a Thomson Reuters poll. The company also reported record full-year earnings.
However, Dimon's pay was cut to $11.5 million from $23 million a year ago in the aftermath of the Whale trade and the bank's board said it will continue to oversee the firm’s remediation efforts.
Dimon’s reputation took a hit last year on the wrong-way trade executed by the CIO office in London that has so far cost the Wall Street giant $6.2 billion.
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