JPMorgan Chase (JPM) Q1 Net Income Rises 67%, Tops Views
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JPMorgan Chase & Co. (NYSE: JPM) reported solid first quarter results this morning, which where bolstered by strong results in the investment bank.
Net income rose 67 percent to $5.6 billion, driven by a significantly lower provision for credit losses, partially offset by lower net revenue.
The banking-giant reported earnings per share of $1.28, which was $0.12 above the consensus of $1.16. Revenue for the quarter dropped 8 percent to $25.8 billion versus the consensus estimate of $25.48 billion.
A highlight from the quarter was the increase in the common stock dividend to $0.25 per share and the authorization of a new $15 billion multi-year common stock repurchase program, which will include $8 billion in 2011. This announcement was originally made in March following Federal Reserve approval.
Jamie Dimon, Chairman and Chief Executive Officer, commented on the quarter: "The Firm’s results reflected a strong quarter across the Investment Bank and solid performance from Card Services, Commercial Banking, Treasury & Securities Services, and Asset Management. These results partially benefited from improved credit trends in our credit card and wholesale businesses."
JP Morgan ended the first quarter with a strong Tier 1 Common ratio of 10.0%.
In investment banking, JP Morgan had Q1 revenues of $8.23 billion, up from $6.21 billion in Q4 and $8.32 billion in Q1 last year. Investment bank net income for the quarter was $2.37 billion, versus $1.5 billion in Q4 and $2.47 billion in Q1 last year.
Retail financial services, net revenue was $6.3 billion, a decrease of $1.5 billion, or 19%, compared with the prior year. Net interest income was $4.6 billion, down by $394 million, or 8%, reflecting the impact of lower loan balances due to portfolio runoff and narrower loan spreads. Noninterest revenue was $1.6 billion, down by $1.1 billion, or 40%, driven by lower mortgage fees and related income.
Card services reported net income of $1.3 billion, compared with a net loss of $303 million in the prior year. The improved results were driven by a lower provision for credit losses, partially offset by lower net revenue.
Commercial banking had net income of $546 million, an increase of $156 million, or 40%, from the prior year. The increase was driven by a reduction in the provision for credit losses and higher net revenue. Net revenue was $1.5 billion, up by $100 million, or 7%, from the prior year.
Treasury and Securities services had net income was $316 million, an increase of $37 million, or 13%, from the prior year. Net revenue was $1.8 billion, an increase of $84 million, or 5%, from the prior year.
Asset management had net income of $466 million, an increase of $74 million, or 19%, from the prior year. These results reflected higher net revenue and a lower provision for credit losses, largely offset by higher noninterest expense. Net revenue was $2.4 billion, an increase of $275 million, or 13%, from the prior year.
Corporate and private equity had net income of $722 million, compared with net income of $228 million in the prior year.
Net income rose 67 percent to $5.6 billion, driven by a significantly lower provision for credit losses, partially offset by lower net revenue.
The banking-giant reported earnings per share of $1.28, which was $0.12 above the consensus of $1.16. Revenue for the quarter dropped 8 percent to $25.8 billion versus the consensus estimate of $25.48 billion.
A highlight from the quarter was the increase in the common stock dividend to $0.25 per share and the authorization of a new $15 billion multi-year common stock repurchase program, which will include $8 billion in 2011. This announcement was originally made in March following Federal Reserve approval.
Jamie Dimon, Chairman and Chief Executive Officer, commented on the quarter: "The Firm’s results reflected a strong quarter across the Investment Bank and solid performance from Card Services, Commercial Banking, Treasury & Securities Services, and Asset Management. These results partially benefited from improved credit trends in our credit card and wholesale businesses."
JP Morgan ended the first quarter with a strong Tier 1 Common ratio of 10.0%.
In investment banking, JP Morgan had Q1 revenues of $8.23 billion, up from $6.21 billion in Q4 and $8.32 billion in Q1 last year. Investment bank net income for the quarter was $2.37 billion, versus $1.5 billion in Q4 and $2.47 billion in Q1 last year.
Retail financial services, net revenue was $6.3 billion, a decrease of $1.5 billion, or 19%, compared with the prior year. Net interest income was $4.6 billion, down by $394 million, or 8%, reflecting the impact of lower loan balances due to portfolio runoff and narrower loan spreads. Noninterest revenue was $1.6 billion, down by $1.1 billion, or 40%, driven by lower mortgage fees and related income.
Card services reported net income of $1.3 billion, compared with a net loss of $303 million in the prior year. The improved results were driven by a lower provision for credit losses, partially offset by lower net revenue.
Commercial banking had net income of $546 million, an increase of $156 million, or 40%, from the prior year. The increase was driven by a reduction in the provision for credit losses and higher net revenue. Net revenue was $1.5 billion, up by $100 million, or 7%, from the prior year.
Treasury and Securities services had net income was $316 million, an increase of $37 million, or 13%, from the prior year. Net revenue was $1.8 billion, an increase of $84 million, or 5%, from the prior year.
Asset management had net income of $466 million, an increase of $74 million, or 19%, from the prior year. These results reflected higher net revenue and a lower provision for credit losses, largely offset by higher noninterest expense. Net revenue was $2.4 billion, an increase of $275 million, or 13%, from the prior year.
Corporate and private equity had net income of $722 million, compared with net income of $228 million in the prior year.
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