Friday, October 12, 2012

Breakfast News: JPMorgan Chase & Co. (NYSE:JPM) & CVS Caremark Corporation (NYSE:CVS)

JPMorgan Chase & Co. (NYSE:JPM) on Friday reported a 34 percent rise in profit for the quarter to September, at a record $5.7 billion.

Its earnings were $1.40 per share, surpassing analyst forecast of $1.21 a share.

Revenue also rose to $25.1 billion, above forecasts of $24.4 billion.

The bank said that the bank had lesser provisioning for bad loans which helped in its reporting higher earnings. It made a provision of $1.8 billion for bad debts, which 26 percent lower than what it had set aside a year earlier.

Shares in the bank were up 39 cents at $42.49 in pre-market trades. 

Meanwhile, CVS Caremark Corporation(NYSE:CVS) has come under the scanner of U.S. regulators for allegedly refilling prescription and submitting insurance claims to Medicare without the approval from patients.

The Los Angeles Times reported on Friday that the Inspector General for the U.S. Department of Health and Human Services had launched an investigation into CVS Caremark's alleged fraudulent behaviour.

Reuters which followed up the story said that officials at the agency and CVS Caremark, the second-biggest U.S. drug store chain, could not be reached for comment outside regular U.S. business hours.

Medicare provides medical benefits for the elderly and disabled. In January CVS had agreed to pay $5 million to settle charges of inaccurate pricing of some drugs for the elderly and disabled.

Shares of CVS are down 1.50% to $47.60 in the pre-market session.

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