JPM
JPMorgan Q1 results strengthen on investment banking, equity markets revenue
- JPMorgan Chase (NYSE:JPM) Q1 earnings beat the average analyst on
strong global investment banking fees and equity market revenue.
- Consumer spending is recovering to pre-pandemic levels, up 14% Y/Y,
reflecting strong momentum in travel & entertainment spend (up 50% in
March
vs. February), but consumers aren't adding to their debt, the bank said.
- "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,"
JPMorgan CEO Jamie Dimon said.
- Still, JPM shares fall 0.6% in premarket trading.
- Sees FY2021 net interest income ~$55B, market dependent; adjusted
expense of ~$70B, and card net charge-off rate of 2.5%+/-.
- Q1 non-GAAP EPS of $3.31 beats $3.03 consensus; compares with $3.07 in
Q4 2020.
- Q1 credit costs net benefit of $4.2B, including $5.2B of net reserve
releases and $1.1B of net charge-offs; compares with $1.9B net benefit in
Q4 2020.
- Q1 average loans rose 1%, average deposits increased 32%.
- Q1 revenue by division:
- Consumer & Community Banking net revenue of $12.5B fell 2% Q/Q and 6%
Y/Y, with Consumer and Business Banking net revenue slipping 2% Q/Q and
10%
Y/Y; Home Lending net revenue was flat Q/Q and up 26% Y/Y; Card & Auto
net
revenue falls 2% Q/Q and 7% Y/Y.
- Corporate & Investment Bank net revenue of $14.6B jumped 29% Q/Q and
46% Y/Y,
1. Investment banking revenue of $2.9B, up $2.0B Y/Y, driven by 57%
increase in IB fees.
2. Fixed income market revenue of $5.8B, up 15% Y/Y due to strong
performance in securitized products and credit, largely offset by lower
revenue in rates and currencies & emerging markets against strong
performance in the prior year.
3. Equity markets revenue of $3.3B, up 47% Y/Y with strong performance
across all products.
- Commercial Banking net revenue of $2.39B, down 3% Q/Q and up 11% Y/Y.
- Asset & Wealth Management net revenue of $4.08B, up 5% Q/Q and 20% Y/Y.
- Conference call at 8:30 AM ET.
- Previously (April 14): JPMorgan Chase EPS beats by $1.38, beats on
revenue
|Today, 7:20 AM|6 Comments
JPMorgan Q1 results strengthen on investment banking, equity markets revenue
- JPMorgan Chase (NYSE:JPM) Q1 earnings beat the average analyst on
strong global investment banking fees and equity market revenue.
- Consumer spending is recovering to pre-pandemic levels, up 14% Y/Y,
reflecting strong momentum in travel & entertainment spend (up 50% in
March
vs. February), but consumers aren't adding to their debt, the bank said.
- "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,"
JPMorgan CEO Jamie Dimon said.
- Still, JPM shares fall 0.6% in premarket trading.
- Sees FY2021 net interest income ~$55B, market dependent; adjusted
expense of ~$70B, and card net charge-off rate of 2.5%+/-.
- Q1 non-GAAP EPS of $3.31 beats $3.03 consensus; compares with $3.07 in
Q4 2020.
- Q1 credit costs net benefit of $4.2B, including $5.2B of net reserve
releases and $1.1B of net charge-offs; compares with $1.9B net benefit in
Q4 2020.
- Q1 average loans rose 1%, average deposits increased 32%.
- Q1 revenue by division:
- Consumer & Community Banking net revenue of $12.5B fell 2% Q/Q and 6%
Y/Y, with Consumer and Business Banking net revenue slipping 2% Q/Q and
10%
Y/Y; Home Lending net revenue was flat Q/Q and up 26% Y/Y; Card & Auto
net
revenue falls 2% Q/Q and 7% Y/Y.
- Corporate & Investment Bank net revenue of $14.6B jumped 29% Q/Q and
46% Y/Y,
1. Investment banking revenue of $2.9B, up $2.0B Y/Y, driven by 57%
increase in IB fees.
2. Fixed income market revenue of $5.8B, up 15% Y/Y due to strong
performance in securitized products and credit, largely offset by lower
revenue in rates and currencies & emerging markets against strong
performance in the prior year.
3. Equity markets revenue of $3.3B, up 47% Y/Y with strong performance
across all products.
- Commercial Banking net revenue of $2.39B, down 3% Q/Q and up 11% Y/Y.
- Asset & Wealth Management net revenue of $4.08B, up 5% Q/Q and 20% Y/Y.
- Conference call at 8:30 AM ET.
- Previously (April 14): JPMorgan Chase EPS beats by $1.38, beats on
revenue
|Today, 7:20 AM|6 Comments
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