How the House of Morgan Won Earnings
Considering the recent uncertainty and turbulence in the markets from the Brexit, JPMorgan impressed yet again with its most recent earnings report. Even the Fed thought so.
JPMorgan Chase & Co. (NYSE: JPM) reported its second-quarter financial results before the markets opened on Thursday. Known as the bank with the ironclad balance sheet, JPMorgan impressed yet again with its most recent earnings report. With this win JPMorgan is propping up the other major banks in the United States, because they believe that their earnings will be in line as well.
Considering the recent uncertainty and turbulence in the markets from the Brexit, JPMorgan continued to be there for its clients and provided a solid and steadfast base. Even the Fed thought so when it had no objection to this megabank’s capital relocation plan.
The company said that it had $1.55 in earnings per share (EPS) on $24.4 billion in revenue. The consensus estimates from Thomson Reuters had called for $1.43 in EPS on revenue of $24.16 billion. The same period from last year had $1.54 in EPS on $24.53 billion in revenue.
[nativounit]
A couple quick stats the company gave were as follows:
- Tangible book value increased by 9% to $50.31.
- The Basel III common equity tier 1 capital totaled $179 billion, an increase of 11.9%.
- Noninterest expense was $13.6 billion, down 6%, driven by lower legal expense and continued expense reduction initiatives.
- $4.4 billion was returned to shareholders in the second quarter through $2.6 billion in net purchases and a common dividend of $0.48 per share.
Jamie Dimon, chairman and CEO of JPMorgan, commented on the financial results:
JPMorgan Chase continued to perform well in all of our major businesses. We saw strong underlying performance with record consumer deposits (up 10%), credit card sales volume (up 8%), merchant processing volume (up 13%) and broad core loan growth (up 16%) – particularly in mortgage and commercial real estate. Outside of energy, both wholesale and consumer credit quality remained very good.
Shares of JPMorgan were up 2.3% to $64.54 after about half an hour of trading on Thursday. The consensus analyst price target is $69.93, and the 52-week trading range is $50.07 to $70.61.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
