JPMorgan's Subprime Mortgage Exposure Sends Profit Down 34 Percent in Fourth Quarter NEW YORK (AP) -- JPMorgan Chase & Co. said Wednesday its fourth-quarter profit fell 34 percent after its exposure to subprime mortgages -- though much smaller than at banking peers like Citigroup Inc. -- devalued its portfolio by $1.3 billion.
JPMorgan's $1.3 billion write-down sent its net income down to $2.97 billion, or 86 cents a share, in the period from October to December, from $4.53 billion, or $1.26 a share, in the same period a year earlier.
Revenue was $17.38 billion, up from $16.19 billion the prior year.
But the bank boosted its provisions for loan losses by $2.54 billion in anticipation of more problems with U.S. consumers' ability to make their loan payments.
Analysts polled by Thomson Financial, on average, predicted fourth-quarter earnings of 93 cents per share on revenue of $17.05 billion.
For the full-year 2007, JPMorgan's net income was a record $15.4 billion, or $4.38 a share, on record revenue of $71.4 billion.
