JPMorgan Chase beats by $0.27, reports revs in-line (195.43)
- Reports Q1 (Mar) earnings of $4.44 per share, $0.27 better than the FactSet Consensus of $4.17; reported revenues rose 9.3% year/year to $41.93 bln vs the $41.69 bln FactSet Consensus.
- Guidance from slide presentation: We expect ~$88 bln in NII ex. Markets for 2024, as loan growth partially offsets lower rates. 2024 expense outlook is ~$90 bln.
- Average loans up 16%, or up 3% excluding First Republic; average deposits up 2%, or flat excluding First Republic.
- Net interest income was $23.2 billion, up 11%, or up 5% excluding First Republic
- The provision for credit losses was $1.9 billion, reflecting net charge-offs of $2.0 billion and a net reserve release of $72 million. The net reserve release included a $142 million net release in Wholesale and a $44 million net build in Consumer. Net charge-offs of $2.0 billion were up $819 million, predominantly driven by Card Services. The prior-year provision was $2.3 billion, reflecting net charge-offs of $1.1 billion and a net reserve build of $1.1 billion.
- Jamie Dimon, Chairman and CEO, commented: "We reported strong results in the first quarter, delivering net income of $13.4 billion, or $14.0 billion excluding a $725 million increase to the FDIC special assessment. Last month, we announced a 10% increase to the common dividend. Our exceptionally high CET1 capital ratio of 15.0% and peer-leading returns provide us with the capacity and flexibility to both reinvest for growth and maintain an attractive capital-return profile, without compromising our fortress balance sheet."
- Dimon continued: "This quarter, NII declined 4% sequentially, and as expected, NII ex. Markets declined 2% sequentially due to deposit margin compression and lower deposit balances, mostly in CCB. Looking ahead, we expect normalization to continue for both NII and credit costs."
- Dimon continued: "Our lines of business saw strong underlying performance. In CCB, client investment assets were up 25% excluding First Republic, and we continued to add new customers. In CIB, IB fees increased 21%, reflecting improved DCM and ECM activity. In CB, we saw strong growth in Payments fees and onboarded a significant number of new client relationships. Finally, in AWM, asset management fees were up 14%, with continued strong net inflows." Dimon added: "Many economic indicators continue to be favorable. However, looking ahead, we remain alert to a number of significant uncertain forces. First, the global landscape is unsettling -- terrible wars and violence continue to cause suffering, and geopolitical tensions are growing. Second, there seems to be a large number of persistent inflationary pressures, which may likely continue. And finally, we have never truly experienced the full effect of quantitative tightening on this scale. We do not know how these factors will play out, but we must prepare the Firm for a wide range of potential environments to ensure that we can consistently be there for clients."