JP Morgan Chase & Co. CFO Dina Dublon asked something new of analysts when she released the bank’s annual earnings last week – stop blaming the private equity group.
That’s because JPMorgan Partners (JPMP), in New York, ended 2003 with two consecutive quarters of net gains, ending three years of red ink. It also reported net private equity gains of $27 million for the year. In 2002 the group posted a $733 million loss.
Two quarters of positive earnings, however, won’t earn JPMP a reprieve from the bank’s management team. The bank will continue to scale back the PE group’s operations. At $7.25 billion, JPMP accounts for 15% of the bank’s common equity.