It appears that banks such as JP Morgan are looking to raise their ATM fees in order to recover some of the revenue that is lost due to regulations from the Dodd-Frank legislation on debit card and overdraft protection fees. They are currently testing ATM fee's of $5 and higher for eventual rollout to all customers.
I've included the 4th quarter financials for JPM to highlight the fact that a major contibutor to their $17 Billion in Net Income was of $51 Billion in Non-Interest Income, the majority of which comes from Commisions and Fees. Bottom line, I'm not really sure that I believe JPM's claim that the Dodd-Frank bill is crippling their ability to generate profits.
| 31-Dec-10 | |||
| Final | |||
| Total Interest Income | $63,782.0 | ||
| Interest and Fees On Loans | 40,388.0 | ||
| Interest Income On Fed Repos | 1,786.0 | ||
| Interest on Bank Deposits | 345.0 | ||
| Taxable Investment Income | 9,715.0 | ||
| Other Interest or Dividend Income | 11,548.0 | ||
| Miscellaneous Interest Income | 541.0 | ||
| Trading Account Interest | 11,007.0 | ||
| Total Interest Expense | 12,781.0 | ||
| Interest on Customer Deposits | 3,424.0 | ||
| Interest Expense on Fed Repos | -192.0 | ||
| Other Interest Expense | 9,549.0 | ||
| Interest Expense on Debt | 5,504.0 | ||
| Other Borrowed Funds | 4,045.0 | ||
| Net Interest Income | 51,001.0 | ||
| Loan Loss Provision | 16,639.0 | ||
| Net Interest Inome After Loan Loss Prov | 34,362.0 | ||
| Non-Interest Income | 51,693.0 | ||
| Securities Gain | 2,965.0 | ||
| Trading Account Income | 9,404.0 | ||
| Trust Income, Commissions & Fees | 35,790.0 | ||
| Trust Income | 6,128.0 | ||
| Other Operating Income | 3,534.0 | ||
| Non-Interest Expense | 61,196.0 | ||
| Labor & Related Expense | 28,124.0 | ||
| Occupancy and Equipment Expenses | 3,681.0 | ||
| Misc Operating Expense | 15,494.0 | ||
| Other Expense | 7,130.0 | ||
| Advertising Expense | 2,446.0 | ||
| Unusual Expense | 0.0 | ||
| Other SG&A Expense | 4,684.0 | ||
| Other Commissions and Fees Paid | 6,767.0 | ||
| Pretax Income | 24,859.0 | ||
| Income Taxes | 7,489.0 | ||
| Consolidated Net Income | 17,370.0 | ||
| Net Income Before Extraordinaries | 17,370.0 |
http://www.cutimes.com/2011/03/16/bank-atm-fees-headed-to-5
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