JPMorgan Chase beats by $0.05, misses on revs
Reports Q1 (Mar) earnings of $1.45 per share, excluding non-recurring items, $0.05 better than the Capital IQ Consensus Estimate of $1.40; revenues rose 4.8% year/year to $24.1 bln vs the $24.4 bln consensus. Revenues were predominantly driven by strong performance in the Corporate & Investment Bank, both in Markets and Investment Banking. In addition, there was an increase in fee revenue in Asset Management and Mortgage Banking, partially offset by lower gains in Private Equity.
- Tangible book value per share of $45.45, up 9% YoY
- Basel III common equity Tier 1 of $167 billion, or ratio of 10.6%
- SLR of 5.7% and Bank SLR of 6.0%
- Core loans up 10% compared with the prior year
- Return on Tier 1 Common Equity 14%
- Overhead Ratio 60%
- Net Payout Ratio 53%
- Net income was $2.2 billion, an increase of $238 million compared with the prior year, driven by both improved net revenue and lower noninterest expense. Net revenue was $10.7 billion, an increase of $170 million compared with the prior year, driven by higher noninterest revenue across businesses, up $302 million.
- Net interest income was $7.0 billion, down $132 million, driven by spread compression, largely offset by higher deposit balances in Consumer & Business Banking and higher credit card loans.
- Mortgage Banking net income was $326 million, an increase of $194 million from the prior year. Net revenue was $1.7 billion, an increase of $151 million compared with the prior year, driven by lower MSR risk management losses, partially offset by lower servicing revenue....
- Net income was $2.5 billion, up $412 million, compared with $2.1 billion in the prior year, driven by higher net revenue. Banking revenue was $3.1 billion, up 12% from the prior year, on strong performance in investment banking fees across products.
- Treasury Services revenue was $1.0 billion, down 2% compared with the prior year, driven by lower net interest income and lower trade finance revenue. Lending revenue was $353 million, up 9% from the prior year, largely reflecting higher gains on securities received from restructurings.
- Markets & Investor Services revenue was $6.5 billion, up 7% from the prior year, despite the impact of business simplification, driven by higher Markets revenue.
- Excluding the revenue decline related to business simplification, Total Markets and Fixed Income Markets would each have been up 20%.
- Equity Markets revenue was up 22%. Macro events drove robust client activity in Fixed Income Markets including in Currencies & Emerging Markets, and Rates, as well as in Equity Markets.
- Net income was $598 million, relatively flat compared with the prior year. Net revenue was $1.7 billion, an increase of $64 million compared with the prior year, driven by higher noninterest revenue on record gross investment banking revenue. Net interest income was $1.1 billion, down slightly compared with the prior year, reflecting spread compression on loan and liability products, largely offset by higher balances.