Net interest income, which measures gains from lending after payments to depositors, rose 5% to $12.1 billion at JPMorgan. Investors are already taking advantage of the growth: The company, along with rival Goldman Sachs , has led the Dow Jones Industrial Average’s march toward a record level of 20,000 in the wake of Trump’s election. The quarterly resultsmay provide a catalyst for further increases in bank stocks, which rallied in 2016 on speculation that Trump would usher in a new era of deregulation and soften stiff rules that were implemented in the wake of the 2008 financial crisis and bailouts. “In the clear light of day, no rational person I know can possibly say that all the things that were done were accurate,” Dimon said on a conference call with analysts. Trump also has pledged to slash corporate tax rates, a move that would provide an additional boon to net income for both banks and their clients. The president-elect’s promise to increase spending on infrastructure such as highways could help to accelerate loan growth. Dimon was named by Trump last month to a new President’s Strategic and Policy Forum, which will advise the future president starting in February. One idea is to make it easier for first-time borrowers to get mortgages, he said. It’s impossible to say how all the regulatory and legal changes under Trump might affect the bank. “There’s a lot of wood to be chopped and sausage to be made,” Dimonsaid. The fourth quarter markedthe third straight period in whichlarge banks have reaped a windfall from handling trades spurred by political and economic events.
Exempt is to be free from a tax liability. Total asset turnover gives the efficiency of the business in managing their assets. Zero-balance account: A zero balance checking account in which the balance is maintained by transferring funds from a master account in an amount only large enough to cover check presented. You can calculate the current ratio by applying the following formula. The current assets of a company are those which will be easy business loan used up within a single fiscal year. Acid test ratio is a ratio that analyses the liquidity position of the business. Disability benefits: These benefits refer to the money available from private disability insurance companies or social security agencies to individuals who meet established medical guidelines for disability. Periodic valuation of the assets deals with determining the future value of assets and investment portfolios. Accounting insolvency: Accounting insolvency occurs when total liabilities exceed total assets in the balance sheet of a business. Companies can issue convertible bonds to borrow money.
Growth rates: In business, growth rates refer to the increment of a specific variable or financial characteristic within a specific period and context. Fixed-income equivalent: Convertibles like bonds or stock which are traded like fixed income investments, because the market price of the common stock they convert to have fallen so low as to render the conversion feature valueless. Banks provide a line of credit to the borrower. In case the business is unable to pay interest and principal payments on the borrowed sum, the bank has the right to seize the collateral. In cases, where no owner is apparent, the property will thereon be reverted to the state.