Finance
JPM earned an all-time record of $19 billion in net income in 2011, up to 9 percent from the previous record of $17.4 billion the prior year. The company’s net income would have been considerably more, except for losses from the JPM mortgage business. Mortgage losses are expected to continue for a while longer, but the bulk if JPM bad mortgages have already been absorbed.
JPM’s recent income statements are provided in Exhibit 7. Note the unusual decline in revenue associated with the increase in net income.
JPM reinstated its annual dividend of $1.00 per share in April of 2011 and increase it to $1.20 a share in April of 2012. Although JPM’s goodwill has remained the same over the last three years, total goodwill of $48 billion indicates a history of paying more than fair market value for many acquisitions. JPM’s long-term debt is declining as shown in Exhibit 8.