Financial services company, JPMorgan Chase & Co.(JPM) reported increased profits in Q4, and cut CEO’s bonus as a result of the “London Whale” trade.

The New York, NY based company reported fourth quarter earnings of $5.69 billion, or $1.39 per share, a 34% increase from $3.73 billion, or 90 cents per share last year. Analysts expected to see earnings of $1.16 per share.

Total revenue for the quarter was reported at $24 billion, up from $21.5 billion from last year. Managed revenue was $24.38 billion, a 10% increase from last year. Analysts expected to see revenue of $24.42 billion.

JPM’s profit increase was aided by increased mortgage lending earnings, and reduced costs from bad loans.

The company reported that the board of directors have reduced CEO Jamie Dimon’s bonus in half after the $6.2 billion “London Whale” trading loss. The firm commented, “as chief executive officer, Mr. Dimon bears ultimate responsibility for the failures that led to the losses in the Chief Investment Office.”

Dimon’s total compensation in 2012 was $11.5 million. This included a $1.5 million salary and $10 million bonus.

JPMorgan shares were down 27 cents, or -0.60% during premarket trading Wednesday. The stock has increased 10% in the past year.

The Bottom Line
Shares of JP Morgan (JPM) have a 2.59% dividend yield, based on last night’s closing stock price of $46.35. The stock has technical support in the $42-$43 price area. If the shares can firm up, we see overhead resistance around the $48-$49 price levels.

JPMorgan Chase & Co.(JPM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

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