JPMorgan (JPM) has just announced Q1 EPS of $.40, ahead of estimates of $.16 per share. Revenue of $26.9 was also ahead of top-line estimates of about $23 billion.
The quote from Dimon: “The firm earned more than $2 billion this quarter, despite extremely high credit costs of $10 billion (including $4 billion added to reserves), largely in Card Services and Retail Financial Services. Importantly, we generated record firmwide revenue; record revenue and net income in the Investment Bank; and benefited from underlying growth in Retail Banking, including increased deposits and checking accounts, higher mortgage refinancing volumes and excellent progress on the Washington Mutual integration. We also continued to see solid volumes and earnings across Commercial Banking, Treasury & Securities Services and Asset Management.”
Like Goldman Sachs, the company reported strong trading results at its investment-banking unit: “The increase was driven by record results in credit trading, emerging markets and rates, combined with strong results in currencies and gains of $422 million from the widening of the firm’s credit spread on certain structured liabilities. These results were offset partially by $711 million of net markdowns on leveraged lending funded and unfunded commitments, as well as $214 million of net markdowns on mortgage-related exposures.”
Unlike with Goldman, when it announced strong earnings, JPMorgan isn’t saying anything about selling shares or paying back TARP.
So far, investors aren’t particularly moved one way or another, as JPMorgan shares are just up a few ticks pre-market.
We’ll be liveblogging the call, which starts at 8:00 AM ET.
More to come.