JPMorgan Rises Slightly Despite Huge Earnings Beat

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JPMorgan Chase & Co. (NYSE: JPM) reported its first-quarter financial results before the markets opened on Thursday. The company posted $1.65 in earnings per share (EPS) and $25.59 billion in revenue, versus consensus estimates from Thomson Reuters of $1.52 in EPS and revenue of $24.88 billion. The same period of last year reportedly had EPS of $1.35 and $24.08 billion in revenue.

During the quarter, net interest income was $12.4 billion, up 6%, primarily driven by loan growth and the net impact of higher rates. Noninterest revenue was $13.2 billion, up 6%, primarily driven by the Corporate & Investment Bank, largely offset by Card new account origination costs and lower MSR risk management results. Also the provision for credit losses was $1.3 billion, down from $1.8 billion, due to net reserve releases.

Also average core loans were up 11%, with average deposits of $623 billion. Record average loan balances were $118 billion, up 7%, and record average deposit balances were $159 billion, up 5%.

Over the course of the quarter, JPMorgan repurchased $4.6 billion worth of stock. There was $2.8 billion of net repurchases and a common dividend of $0.50 per share.

Book value per share was up 6% to $64.68, and tangible book value was up 6% at $52.04. The Basel III common equity Tier 1 capital ratio was 12.4%, totaling $184 billion.

Jamie Dimon, board chair and chief executive, commented:

We are off to a good start for the year with all of our businesses performing well and building on their momentum from last year. The consumer businesses continue to grow core loans at double digits, outperform the industry in deposit growth, and we once again had very strong card sales volume growth this quarter – reflecting our commitment to providing our customers the innovative products and services they want.

Shares of JPMorgan closed Wednesday at $85.40, with a consensus analyst price target of $91.22 and a 52-week trading range of $57.05 to $93.98. Following the release of the report, the stock was last seen up 0.5% at $85.84 in early trading indications Thursday.