Earnings Reports

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JPMorgan Chase, America's largest bank reported better than expected Q1 earnings Friday before the open. $JPM announced record revenue and profits led by Consumer & Community Banking. Wells Fargo $WFC and PNC Financial $PNC also reported.

john pierpont morgan  

JPMorgan Chase & Co NYSE: JPM · Reported Earnings Before Open Friday

$2.65 Beat $2.37 EPS Forecast AND $29.9B Beat $28.54 billion forecast in revenue 

Earnings

JPMorgan said profit rose 5 percent to $9.18 billion, or $2.65 a share, compared with analysts’ average estimate of $2.37 a share. Revenue rose 5 percent to $29.9 billion as net interest income grew 8 percent, thanks to the “impact of higher rates,” J.P. Morgan said. Revenues were expected to be $28.54 billion, up rom the year-ago quarter. Shares Closed $105.31 Friday. The stock has a 52-week range of $91.11 to $119.24.

In an annual letter to shareholders published last week, CEO Dimon said he doesn't expect a recession anytime soon and he  doesn't worry too much about loan growth; it's just an expected feature of the regular business cycle.

"We do not worry about loan growth," the CEO wrote. "It is most definitely an outcome of how we manage credit and client decisions. We will not stretch, ever, to show growth in loans."

In the JPMorgan conference call watch for macro expectations and risk given the recent weakness in many asset classes with a focus on costs. Higher interest rates boosted the results even with home lending revenue down in the past.

JPMorgan Chase & Co NYSE: JPM

Market Reaction Pre-market 109.24 +3.01 (+2.83%)

Highlights

“We had record revenue and net income, strong performance across each of our major businesses and a more constructive environment,” CEO Jamie Dimon said in a statement. “Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong.”

  • Consumer lending division profit rose 19 percent to $3.96 billion as revenue climbed 9 percent to $13.8 billion. The division grew the profit margin on deposits and grew loans across credit card and auto units.
  • Provision for credit losses stayed flat from a year earlier at $1.3 billion
  • Q1 trading revenue dropped 17 percent to $5.5 billion.
  • Excluding the impact of a year-earlier accounting change, bond trading declined 8 percent and stock trading revenue dropped 13 percent.
  • Banking revenue rose 8 percent to $3.2 billion on higher debt underwriting and advisory fees. The overall division’s profit of $3.25 billion was 18 percent lower than a year earlier.
  • J.P. Morgan’s asset management division profit dropped 14 percent to $661 million on lower market levels and brokerage activity in the quarter.
  • JPM commercial bank posted profit of $1.05 billion, 3 percent higher than a year earlier.

JPM Earnings Q1 2019

The bank continued making long-term investments in its business. J.P. Morgan said it’s expanding its branch network to cover nearly all of the U.S. population by 2022. It also announced the first cryptocurrency from a major U.S. bank, and pledged $350 million to boost the job prospects of people in under-served communities.

JPMorgan Chase & Co NYSE: JPM · Q4 Earnings Recap

$1.98 EPS Missed $2.21 Forecast on $26.8 Missed $26.93 billion forecast in revenue 

Earnings Preview

JPMorgan reported Q4 net income increased 67% to a record $7.1 billion while EPS grew 85% to $1.98 from the same period a year ago. Reported revenues grew 4% to $26.8 billion.  Analysts had expected Adj EPS of $2.21 (range $2.05 to $2.41) on a 4Q adj. revenue estimate of $26.93b (range $26.05b to $28.12b). 4Q total trading revenue is seen at est. $3.57b with equities $1.32b, FICC $2.29b and I-banking rev. est. $1.77b 4Q.

Net yield on interest-earning assets est. was 2.54% with 4Q provision for credit losses est. $1.31. In the JPMorgan conference call watch for macro expectations and risk given the recent weakness in many asset classes with a focus on costs. Higher interest rates boosted the results even with home lending revenue down in the past.

JPMorgan Chase & Co NYSE: JPM 

Market Reaction Pre-market $98.36 −2.58 (-2.56%)

Highlights

  • Net interest income grew 9%, driven by higher rates and loan growth.
  • Non-interest revenue dropped 1% to $12.3 billion.
  • Non-interest expense rose 6%, driven mainly by investments in the business, including technology, marketing and real estate.
  • The provision for credit losses increased by $240 million from last year to $1.5 billion in the quarter, driven by higher net reserve builds in the Consumer and Wholesale portfolios.
  • Return on common equity was 12% in the quarter.

JPM Q4 2018 earnings

      • JPM CEO Jamie Dimon is also chairman of the Business Roundtable for the Trump administration. 

Source: JPM, AlphaStreet

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