J.P. Morgan’s results leave rivals in the red |
| MarketWatch - Jul 14, 2011 |
J.P. Morgan Chase & Co. on Thursday kicked off the banking sector’s earnings season with a big bang and a rally in its shares that would seemingly bode well for the rest of the group.
J.P. Morgan /quotes/zigman/272085/quotes/nls/jpm JPM +2.63% shares added more than 2% to buck the selloff in the broader market while rivals Bank of America Corp. /quotes/zigman/190927/quotes/nls/bac BAC -0.20% and Citigroup Inc. /quotes/zigman/5065548/quotes/nls/c C -0.49% weren’t as fortunate, languishing in red territory.
Why? Look to the NIM.
Viewed as a key measure of a bank’s profitability, NIM, or net interest margin, is the difference between the income produced by a bank’s earning assets and the interest paid out to depositors.
“When you separate out the broker-dealer from the bank, the bank did poorly with lower revenue, lower net interest income and the NIM got crushed,” FBR Capital Markets analyst Paul Miller explained.
Read Full Article from MarketWatch
- Posted: 2011-07-14 12:38:17
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