JPMorgan Smashes Earnings And Revenue Estimates

jamie dimonJamie Dimon

Photo: Mark Wilson / Getty Images

Well done Jamie Dimon!JPMorgan has kicked off earnings season with a solid beat on both the top and bottom line

Revenue for the quarter came in way above estimates at over $27 billion.

EPS of $1.31 per share came in way ahead of estimates of $1.18.

The stock is moving higher on the news to the tune of 1%.

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Here’s some colour commentary from the earnings release.

Jamie Dimon, Chairman and Chief Executive Officer, commented on financial results: “The Firm reported strong revenue1 for the first quarter of 2012 of $27.4 billion, up 24% compared with the prior quarter and up 6% compared with prior year. While several significant items affected our results, overall, the Firm’s performance in the first quarter was solid. The Firm’s return on tangible common equity1 for the first quarter of 2012 was 16%, compared with 11% in the prior quarter and 18% in the prior year.”

Dimon continued: “We are pleased that our results for the quarter reflected positive credit trends for our consumer real estate and credit card portfolios. Estimated losses declined for these portfolios, and we reduced the related loan loss reserves by a total of $1.8 billion in the first quarter. However, with respect to our Mortgage Banking business, we expect to see elevated levels of costs and losses associated with mortgage-related issues for a while longer. Credit trends across our wholesale portfolios were stable and continued to be strong.”

Commenting on the balance sheet, Dimon said: “We strengthened our fortress balance sheet, ending the first quarter with a strong Basel I Tier 1 common ratio of 10.4%. We estimate that our Basel III Tier 1 common ratio was approximately 8.4% at the end of the first quarter.”

“Our strong balance sheet and earnings power allowed the Board to increase our annual dividend to $1.20 per share and authorise a new $15 billion equity repurchase program. The Company will constantly evaluate its best and highest use of capital. We will repurchase equity as deemed appropriate relative to our organic growth, investment opportunities, capital retention needs, and the stock price.”

Investment banking revenue is down from a year ago, but well better than that disastrous Q4.



ORIGINAL POST: The big bank earnings report of the day: JP Morgan quarterly results are due out at 7:00 AM ET.

Analysts expect EPS of $1.18 on revenue of $24.1 billion.

All eyes will be on the company’s trading business, as well as various credit stats.

US futures are currently lower. The number could impact the overall market if dramatic in one direction or another.

We’ll have the numbers here LIVE when it’s out.

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