JPMorgan Chase reports EPS in-line, misses on revs
Reports Q3 (Sep) earnings of $1.37 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $1.37; revenues fell 6.9% year/year to $22.78 bln vs the $23.44 bln Capital IQ Consensus.
* Net interest income was $11.2 billion, down 1% compared to the prior year, as lower investment securities balances and lower trading net interest income were predominantly offset by loan growth. Net interest income was up 2% quarter-over-quarter, driven by higher loan yields and balances.
* RoE 12% compared to 11% in Q2 and 10% in 3Q14.
* Basel III common equity Tier 1 ratio of 11.4%
* Firmwide Legal Expense $1.347 bln pre-tax or $0.26 per share
* Adjusted expense of $14.0 billion and adjusted overhead ratio of 60%.
* Reserve Release for Consumer was +$0.10 and Wholesale was ($0.05)
* The provision for credit losses was $682 million, down 10%, due to lower net charge-offs, largely offset by lower reserve releases. In the current quarter, consumer reserve releases of $591 million, reflecting continued improvement in home prices and delinquencies, were largely offset by an increase in reserves across the wholesale businesses of $310 million driven by select downgrades, including Oil & Gas.
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* Banking revenue was $2.8 billion, up 2%.
* Investment Banking revenue was $1.5 billion, up 5%, on higher debt underwriting fees and higher advisory fees, largely offset by lower equity underwriting fees compared to a strong quarter in the prior year, especially in EMEA.
* Fixed Income Markets revenue reflected lower revenue in Commodities and continued weakness in Credit, partially offset by strength in Currencies & Emerging Markets; and also reflected higher interest costs on higher long-term debt.
* Equity Markets revenue was $1.4 billion, up 9%, with strong performance across derivatives and cash driven by higher client volumes.
* ROE of 8%; 13% adjusted for legal expense, tax benefits and reserve build