GLOBAL - JP Morgan Chase's net income took a severe dent last year plunging by a massive $4.04bn on the previous year's figure.
The firm’s net income for 2001 was $1.69bn compared to $5.73bn in 2000. Q4 net income, including merger and restructuring costs, lost $332m compared with profits of $708m for the corresponding quarter for 2000.
Chairman and CEO William Harrison conceded that the year was a “challenging” one, citing the firm’s exposure to private equity, and deteriorating credit conditions exacerbated by events in Enron and Argentina, as reasons for the fall.
“He said: “2001 was a challenging year for JP Morgan Chase, and our financial results clearly reflect the difficult operating environment.
“Fourth quarter results were particularly affected by our exposure to private equity investments, and to Enron and Argentina. In this quarter we have moved aggressively to value those exposures to market and to build loan loss reserves further.”
Total assets under management at year-end were $605bn - excluding American Century they were also 5% lower than a year ago but 4% higher than at the end of the Q3, 2001.
By Madhu Kalia
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