J.P. Morgan's (JPM) Q1 Beats on Top and Bottom as Loans, Credit Trends Show Improvement
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J.P. Morgan (NYSE: JPM) shares are indicated for a modestly higher open Friday (the 13th!) following impressive first-quarter results.
Revenue for the New York-based financial giant rose 6 percent from $25.22 billion during the same quarter last year to $26.71 billion. Revs were up 24 percent from the fourth quarter of 2012.
Total net income fell 3 percent from $5.56 billion in the year-ago quarter to $5.38 billion, or $1.31 per share.
The Street was expecting quarterly EPS of $1.12 and revs of $24.4 billion.
J.P. Morgan's Tier 1 capital ratio improved 30 basis points to 12.6 percent, while its Tier 1 common ratio rose 40 basis points to 10.4 percent.
Total loans popped 5 percent to $720.97 billion.
Investment banking revs fell 11 percent, financial services rose 40 percent, card services revs dipped 2 percent, commercial banking saw a 9 percent increase, asset management was about flat, and Treasury services revs rose 9 percent.
"We are pleased that our results for the quarter reflected positive credit trends for our consumer real estate and credit card portfolios," commented CEO Jamie Dimon. "Estimated losses declined for these portfolios, and we reduced the related loan loss reserves by a total of $1.8 billion in the first quarter. However, with respect to our Mortgage Banking business, we expect to see elevated levels of costs and losses associated with mortgage-related issues for a while longer. Credit trends across our wholesale portfolios were stable and continued to be strong."
Shares are up about a half percent ahead of Friday's opening bell.
Revenue for the New York-based financial giant rose 6 percent from $25.22 billion during the same quarter last year to $26.71 billion. Revs were up 24 percent from the fourth quarter of 2012.
Total net income fell 3 percent from $5.56 billion in the year-ago quarter to $5.38 billion, or $1.31 per share.
The Street was expecting quarterly EPS of $1.12 and revs of $24.4 billion.
J.P. Morgan's Tier 1 capital ratio improved 30 basis points to 12.6 percent, while its Tier 1 common ratio rose 40 basis points to 10.4 percent.
Total loans popped 5 percent to $720.97 billion.
Investment banking revs fell 11 percent, financial services rose 40 percent, card services revs dipped 2 percent, commercial banking saw a 9 percent increase, asset management was about flat, and Treasury services revs rose 9 percent.
"We are pleased that our results for the quarter reflected positive credit trends for our consumer real estate and credit card portfolios," commented CEO Jamie Dimon. "Estimated losses declined for these portfolios, and we reduced the related loan loss reserves by a total of $1.8 billion in the first quarter. However, with respect to our Mortgage Banking business, we expect to see elevated levels of costs and losses associated with mortgage-related issues for a while longer. Credit trends across our wholesale portfolios were stable and continued to be strong."
Shares are up about a half percent ahead of Friday's opening bell.
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