JPMorgan (JPM) Q2 Results Beat on Top and Bottom; Basel III Ratio Looks Strong
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JPMorgan Chase & Co. (NYSE: JPM) is trading higher this morning, following strong second-quarter results from the New York, NY-based financial giant.
Expected to report earnings of $1.21, JPMorgan comfortably beat that expectation with EPS of $1.27 in the quarter. Net income grew about 13.3 percent to $5.431 billion. Income fell just 2 percent quarter-over-quarter, from $5.555 billion.
Revenues for the bank jumped 6.7 percent, from $25.101 billion to $26.779 billion, edging out the Street consensus calling for revs of $25.13 billion.
"Our second-quarter earnings reflected solid performance across most of our businesses," JPMorgan CEO Jamie Dimon commented. "With respect to our credit card portfolio, delinquencies and net charge-offs improved, and we reduced loan loss reserves by $1.0 billion as estimated losses declined. We expect credit card net charge-offs to continue to improve next quarter as we approach a more normalized credit environment. Within our wholesale credit portfolio, credit trends appear to have normalized. With respect to our mortgage portfolio, delinquency and net charge-off trends improved modestly compared with the prior quarter; however, net charge-offs remained high, and we expect credit losses to remain elevated."
JPMorgan's book value in the quarter rose from $40.99 to $44.77, a reasonable 9.2 percent increase from 2010's second quarter.
Tier 1 capital ratio was 12.4 in the quarter, from 12.1 last year. Basel I Tier Common ratio was 10.1 percent, while its Basel III Tier I Common ratio was 7.6 percent at the end of the quarter.
Net income at JPMorgan's Investment Bank division saw a nice jump as well, about 49 percent from $1.381 to $2.057 billion. Suffering a loss was its Retail Financial Services, net income fell 44 percent from $1.042 billion to $582 million.
JPMorgan shares are up nearly 2 percent ahead of the bell Thursday.
Expected to report earnings of $1.21, JPMorgan comfortably beat that expectation with EPS of $1.27 in the quarter. Net income grew about 13.3 percent to $5.431 billion. Income fell just 2 percent quarter-over-quarter, from $5.555 billion.
Revenues for the bank jumped 6.7 percent, from $25.101 billion to $26.779 billion, edging out the Street consensus calling for revs of $25.13 billion.
"Our second-quarter earnings reflected solid performance across most of our businesses," JPMorgan CEO Jamie Dimon commented. "With respect to our credit card portfolio, delinquencies and net charge-offs improved, and we reduced loan loss reserves by $1.0 billion as estimated losses declined. We expect credit card net charge-offs to continue to improve next quarter as we approach a more normalized credit environment. Within our wholesale credit portfolio, credit trends appear to have normalized. With respect to our mortgage portfolio, delinquency and net charge-off trends improved modestly compared with the prior quarter; however, net charge-offs remained high, and we expect credit losses to remain elevated."
JPMorgan's book value in the quarter rose from $40.99 to $44.77, a reasonable 9.2 percent increase from 2010's second quarter.
Tier 1 capital ratio was 12.4 in the quarter, from 12.1 last year. Basel I Tier Common ratio was 10.1 percent, while its Basel III Tier I Common ratio was 7.6 percent at the end of the quarter.
Net income at JPMorgan's Investment Bank division saw a nice jump as well, about 49 percent from $1.381 to $2.057 billion. Suffering a loss was its Retail Financial Services, net income fell 44 percent from $1.042 billion to $582 million.
JPMorgan shares are up nearly 2 percent ahead of the bell Thursday.
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