The leverage of JPMorgan, the bank that publicly supports Biden, remains around 10-11, which is not perfect (like Wells Fargo) but acceptable,
Document 1:
Amounts in billions of dollars.
JPMorgan publishes a comprehensive summary table giving the actual amount of tangible equity: Total tangible common equity…
Document 2:
An important note: Jamie Dimon, the boss of JPMorgan, said that he wanted to maintain a high amount of cash to be able to invest it in the future in anticipation of a significant and sustainable inflation, which is totally illogical but it is what is actually seen in the assets of the last two quarters.
Indeed, this cash, corresponding to the first two items of the assets, has risen from 525 billion dollars at the end of 2020 to 710 billion in the first two quarters of 2021,
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This cash is part of the excess liquidity in the U.S. that is published in overnight reverse repos.
In fact, Jamie Dimon may be preparing (by hiding it) a war chest to absorb one or two failing European banks…
The negative effects of this coronavirus are over: the provisions for the loans granted by the bank to its customers (about 1,000 billion dollars), have fallen to 19.5 billion against 31.6 in the 2nd quarter of 2020.
JPMorgan’s profits reached 11.948 billion dollars in the 2nd quarter, which corresponds to a net profitability of… 39.2% for 30.479 billion in revenues!
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JPMorgan’s market capitalization of 478 billion dollars is much higher than its real equity, which is logical.
JPMorgan’s Price/Earnings ratio (PER) is 10.7 based on the last four quarters, which is low.
JPMorgan’s stock price reached its all-time high in early June but has been stagnant since then,
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The American big banks are therefore in great shape to be able to withstand the strong turbulences to come, which is far from being the case for European banks…
Click here to read the latest JPMorgan financial report.
Click here to read my article in French about this bank.
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The title of the painting by Udo J. Keppler (1872-1956) after the one by Emile Renouf (1845-1894) at the head of this article “The helping hand” alludes to the fact that this bank has always slavishly helped the powers that be and therefore the interests of the United States since the end of the 19th century…
Its recent establishment in France and the importance of its cash perhaps mean that this bank would prepare a major acquisition in France…
Indeed, with 200 billion dollars of excess (and useless) cash in 2021 compared to 2020, JPMorgan would only make a small bite out of BNP-Paribas (62 billion euros of market capitalization) and Société Générale (20 billion euros of market capitalization)!
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