NEW YORK (TheStreet) -- Shares of JPMorgan Chase & Co. are gaining by 2.53% to $60.85 in early afternoon trading on Tuesday, as the company announced plans to save about $1.4 billion in annual expenses through a cost cutting initiative in 2015, Reuters reports. The global banking and financial services firm is looking to simplify its business, focusing mainly on its consumer and investment banking segments. JPMorgan Chase, the largest bank in the U.S when measured by assets, is expecting its annual expenses to decline to about $57 billion in 2015 from $58.4 billion in 2014, the firm said at its investor day conference, Reuters added. Exclusive Report: Jim Cramer's Best Stocks for 2015 The firm is also getting ready to charge some of its larger clients deposit fees as a result of new rules that make holding the money for these clients too costly, a memo viewed by the Wall Street Journal said. JPMorgan is looking to lower the affected deposits by up to $100 billion by the end of this year, the Journal added. The firm's plan is a part of a series of steps discussed by larger global banks in order to discourage specific deposits as a result of new regulations and low interest rates, the Journal noted. Separately, TheStreet Ratings team rates JPMORGAN CHASE & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: "We rate JPMORGAN CHASE & CO (JPM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: JPMORGAN CHASE & CO's earnings per share declined by 8.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JPMORGAN CHASE & CO increased its bottom line by earning $5.29 versus $4.32 in the prior year. This year, the market expects an improvement in earnings ($5.80 versus $5.29). The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, JPMORGAN CHASE & CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500. The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 88.82%. Regardless of JPM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.20% trails the industry average. Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.1%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share. In its most recent trading session, JPM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year. You can view the full analysis from the report here: JPM Ratings Report
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