Tue Jan 14, 2014 7:32am EST
People walk inside JP Morgan headquarters in New York, October 25, 2013.
Credit: Reuters/Eduardo Munoz
<span id="articleText"/>(Reuters) - JPMorgan Chase & Co reported a 7.3 percent drop in quarterly profit after the biggest U.S. bank by assets paid penalties to the government for not reporting suspicions of fraud by Ponzi-scheming client Bernie Madoff.
<span id="midArticle_0"/>Net income fell to $5.28 billion, or $1.30 per share, in the fourth quarter from $5.69 billion, or $1.39 per share in the same quarter of 2012, the bank said on Tuesday.
<span id="midArticle_1"/>The latest results took into account gains from the sale of Visa Inc shares and One Chase Manhattan Plaza and legal expenses related to the Madoff settlements.
<span id="midArticle_2"/>JPMorgan agreed last week to pay $2.6 billion to settle government and private claims over its handling of Madoff accounts. It estimated then that this would subtract $850 million from fourth-quarter earnings to cover expenses that it had not accounted for in reserves.
<span id="midArticle_3"/>The company agreed to pay nearly $20 billion in 2013 to settle assorted legal claims.
<span id="midArticle_4"/>"It was in the best interests of our company and shareholders for us to accept responsibility, resolve these issues and move forward," Chairman and Chief Executive Jamie Dimon said in a statement.
<span id="midArticle_5"/>Analysts on average had expected earnings of $1.35 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the announced figures were comparable.
<span id="midArticle_6"/>JPMorgan shares were little changed before the opening bell on the New York stock Exchange.
<span id="midArticle_7"/>The stock rose 33 percent in 2013, in line with the 35 percent rise in the KBW Bank index and slightly ahead of the 29 percent gain in Standard & Poor's 500 stock index.
<span id="midArticle_8"/>The shares have been trading this month at their highest levels since 2000.
<span id="midArticle_9"/>Special items highlighted by the bank subtracted 10 cents per share from fourth-quarter earnings, compared with a two-cent boost in the same quarter of 2012.
<span id="midArticle_10"/>The special items included a benefit of 21 cents per share from the sale of Visa shares, 8 cents from the sale of One Chase Manhattan Plaza and an expense of 27 cents per share from legal bills, including the Madoff settlements.
<span id="midArticle_11"/>(Reporting by David Henry and Lauren Tara LaCapra in New York and Tanya Agrawal in Bangalore; Editing by Ted Kerr)
<span id="midArticle_12"/>
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Credit: Reuters/Eduardo Munoz
<span id="articleText"/>(Reuters) - JPMorgan Chase & Co reported a 7.3 percent drop in quarterly profit after the biggest U.S. bank by assets paid penalties to the government for not reporting suspicions of fraud by Ponzi-scheming client Bernie Madoff.
<span id="midArticle_0"/>Net income fell to $5.28 billion, or $1.30 per share, in the fourth quarter from $5.69 billion, or $1.39 per share in the same quarter of 2012, the bank said on Tuesday.
<span id="midArticle_1"/>The latest results took into account gains from the sale of Visa Inc shares and One Chase Manhattan Plaza and legal expenses related to the Madoff settlements.
<span id="midArticle_2"/>JPMorgan agreed last week to pay $2.6 billion to settle government and private claims over its handling of Madoff accounts. It estimated then that this would subtract $850 million from fourth-quarter earnings to cover expenses that it had not accounted for in reserves.
<span id="midArticle_3"/>The company agreed to pay nearly $20 billion in 2013 to settle assorted legal claims.
<span id="midArticle_4"/>"It was in the best interests of our company and shareholders for us to accept responsibility, resolve these issues and move forward," Chairman and Chief Executive Jamie Dimon said in a statement.
<span id="midArticle_5"/>Analysts on average had expected earnings of $1.35 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the announced figures were comparable.
<span id="midArticle_6"/>JPMorgan shares were little changed before the opening bell on the New York stock Exchange.
<span id="midArticle_7"/>The stock rose 33 percent in 2013, in line with the 35 percent rise in the KBW Bank index and slightly ahead of the 29 percent gain in Standard & Poor's 500 stock index.
<span id="midArticle_8"/>The shares have been trading this month at their highest levels since 2000.
<span id="midArticle_9"/>Special items highlighted by the bank subtracted 10 cents per share from fourth-quarter earnings, compared with a two-cent boost in the same quarter of 2012.
<span id="midArticle_10"/>The special items included a benefit of 21 cents per share from the sale of Visa shares, 8 cents from the sale of One Chase Manhattan Plaza and an expense of 27 cents per share from legal bills, including the Madoff settlements.
<span id="midArticle_11"/>(Reporting by David Henry and Lauren Tara LaCapra in New York and Tanya Agrawal in Bangalore; Editing by Ted Kerr)
<span id="midArticle_12"/>
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