JPMorgan shares remain in a bull market supported by Q1 results

JPMorgan Chase & Co (NYSE: JPM) said on Tuesday its profit jumped over 100% in the fiscal second quarter. Despite a 30% decline in markets revenue, its Q2 total revenue still came above expectations. Shares of the New York-based bank were down more than 2% on Tuesday morning.

1. Financial performance

JPMorgan reported $11.95 billion of net income in the second quarter that translates to $3.78 per share. In the same quarter last year, it had posted $4.69 billion of revenue or $1.38 per share. The investment bank’s net revenue printed at $31.409 billion in Q2 that represents a 7.2% annualised decline.

According to FactSet, experts had forecast the company to note $29.97 billion of revenue and $3.20 of EPS. JPMorgan valued credit reserve releases at $3.0 billion that contributed to hawkish earnings.

2. Revenue from individual business segments

Other notable figures in JPMorgan’s earnings report on Tuesday include an 8% decline in net interest income (weaker than expected), a 30% decline in trading revenue, a 19.3% decline in corporate and investment bank revenue, and a 44% decline in fixed income markets revenue.

Consumer and community banking revenue climbed by 3.3%, and equity markets revenue was up 13% in the second quarter. Revenue from fixed-income markets only missed estimates. JPMorgan Chase increased its dividend last month after clearing the U.S. Federal Reserve’s stress test.

3. CEO Jamie Dimon’s remarks

Commenting on the earnings report on Tuesday, CEO Jamie Dimon said:

“Consumer and wholesale balance sheets remain exceptionally strong as the economic outlook continues to improve. In particular, net charge-offs, down 53%, were better than expected, reflecting the increasingly healthy condition of our customers and clients.”

JPMorgan Chase has already started its search for a new CEO to replace Jamie Dimon when he retires – an event that Dimon says is at least five years away. The $468 billion bank has a price to earnings ratio of 12.28.

The post 3 key takeaways from JPMorgan Chase Q2 earnings report appeared first on Invezz.



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