JPMorgan (JPM) Tops Q1 EPS by 7c

JPMorgan (NYSE: JPM) reported Q1 EPS of $1.45, $0.07 better than the analyst estimate of $1.38. Revenue for the quarter came in at $24.8 billion versus the consensus estimate of $24.4 billion.

Noninterest expense was $14.9 billion, up $247 million compared with the prior year, driven by higher Firmwide legal expense. On an adjusted expense1 basis, expense was $14.2 billion down $402 million compared with the prior year, driven by business simplification in the Corporate & Investment Bank and lower noninterest expense in Consumer & Community Banking.

The current quarter also benefited from $177 million in tax adjustments, compared to a tax charge of approximately $90 million in the prior year.

SIGNIFICANT ITEMS

• First-quarter results included as a significant item $487 million (aftertax)8 legal expense ($0.13 per share aftertax decrease in earnings)8

FORTRESS PRINCIPLES

• Tangible book value per share1,16 of $45.45, up 9% YoY
• Basel III common equity Tier 11,2 of $167 billion, or ratio of 10.6%
• Compliant with U.S. LCR9 – HQLA10 of $614 billion
• Firm SLR1 of 5.7% and Bank SLR1 of 6.0%
• Core loans11 up 10% compared with the prior year

Jamie Dimon, Chairman and CEO, commented on the lines of business:

“Consumer & Community Banking saw healthy growth in deposits, investment assets and loans and continued to deepen relationships -– winning four TNS Choice Awards in 2015, including #1 in consumer retail banking nationally for the third consecutive year. In Mortgage, we had higher originations and continued to add high-quality loans to our balance sheet while managing expenses.

The Corporate & Investment Bank maintained its #1 ranking in Global IB fees with strong fees across products, and 100 bps of market share gains over the last year. The Markets business saw an increase in activity in both Fixed Income and Equity Markets.

Commercial Banking generated healthy loan growth in both C&I6 and CRE7 and also delivered an impressive increase in gross investment banking revenue with Commercial Banking clients.

Asset Management had $16 billion of net long-term inflows, generated strong investment performance and continued to grow loan and deposit balances.”

For earnings history and earnings-related data on JPMorgan (JPM) click here.

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