JPMorgan (JPM) Tops Q1 EPS by $1.40, Revenues Beat

April 14, 2021 6:48 AM EDT

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JPMorgan (NYSE: JPM) reported Q1 EPS of $4.50, $1.40 better than the analyst estimate of $3.10. Revenue for the quarter came in at $32.3 billion versus the consensus estimate of $30.52 billion.

  • Reported revenue of $32.3 billion; managed revenue of $33.1 billion2
  • Credit costs net benefit of $4.2 billion included $5.2 billion of net reserve releases and $1.1 billion of net charge-offs
  • Average loans6 up 1%; average deposits up 36%
  • 1.5 trillion of liquidity sources, including HQLA and unencumbered marketable securities7
  • Average deposits up 32%; client investment assets up 44%
  • Average loans6 down 7%; debit and credit card sales volume8 up 9%

Jamie Dimon, Chairman and CEO, commented on the financial results: “JPMorgan Chase earned $14.3 billion in net income reflecting strong underlying performance across our businesses, partially driven by a rapidly improving economy. These results include a benefit from credit reserve releases of $5.2 billion that we do not consider core or recurring profits. We believe our credit reserves of $26 billion are appropriate and prudent, all things considered.”

Dimon continued: “In Consumer & Community Banking, consumer spending in our businesses has returned to pre-pandemic levels, up 14% versus the first quarter of 2019. We are also seeing good momentum in T&E with spend up more than 50% in March versus February. Home Lending originations were very strong, up 40%, with almost 75% of consumer mortgage applications completed digitally, but we expect this to slow with the recent rise in interest rates. Loan demand remained challenged as Card outstandings remain lower despite spend recovering to pre-COVID levels. Deposits were up 32% and investments were up 44%. In the Corporate & Investment Bank, we maintained our wallet share, Global IB fees were up 57% and Commercial Banking generated IB revenue over $1 billion. Corporate clients continued to access capital markets for liquidity and repay revolvers. In Asset & Wealth Management, continued strong investment performance, growth in new products and advisor hiring led to net inflows of $48 billion into long-term products. Also, AWM has seen strong and steady loan demand primarily to support business growth and mortgages.”

Dimon added: “We continue to make significant investments in products, people, and technology, all while maintaining credit discipline and a fortress balance sheet. We are fully engaged in trying to help solve some of the world’s biggest issues, and we announced a commitment to finance and facilitate $200 billion in 2020 to drive action on climate change and advance sustainable development. We remain committed to using our resources to drive inclusive solutions to support our employees, customers, clients and the communities we serve through these trying times. In the quarter, we extended credit and raised capital of $804 billion, as well as funded approximately $10 billion under the SBA’s Paycheck Protection Program, for consumers and clients of all sizes around the world.”

Dimon concluded: “With all of the stimulus spending, potential infrastructure spending, continued Quantitative Easing, strong consumer and business balance sheets and euphoria around the potential end of the pandemic, we believe that the economy has the potential to have extremely robust, multi-year growth. This growth can benefit all Americans, particularly those who suffered the most during this pandemic. If all of the government programs are spent wisely and efficiently, focusing on actual outcomes, the benefits will be more widely shared, economic growth will be more sustainable and future problems, like inflation and too much debt, will be reduced.”

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



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