JPMorgan reported deep losses on mortgage and credit card loans in the fourth quarter. Quarterly profit topped expectations, but analysts had been hoping for signs that the bank's credit costs were leveling off. What are JPMorgan’s results telling us about other bank earnings due next week?
Jason Goldberg, senior equity analyst at Barclays Capital, shared his insight.
“Loan losses have been increasing over the last couple of years,” Goldberg told CNBC.
“We think we’re in the later stages of that cycle, but there’s still more to come.”
Goldberg said he likes the bigger and more diversified names, as opposed to the commercial real estate-heavy regional banks.
Bank of America
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CNBC Data Pages:
Goldberg has investment banking clients who own shares of JPM. Barclays Capital also owns shares of JPM.
Additionally, JPM is or during the last 12 months has been a non-investment banking client of Barclays Bank or an affiliate.