JP Morgan (JPM) reported Q2 earnings that beat the street’s expectations, with EPS coming in at $0.54 (down from $1.20 a year ago) vs. the Street’s $0.44 estimate. JPM recorded $18.39 billion in revenue (down from $18.9 billion a year ago) vs. the consensus estimate of $16.55 billion.
- Increased credit reserves by $1.3 billion firmwide; loan loss allowance coverage of 2.86% for consumer businesses and 2.13% for wholesale businesses
- Recorded markdowns of $1.1 billion in the Investment Bank, related to leveraged lending and mortgage-related positions
- Tier 1 Capital remained strong at $98.7 billion, or 9.1% (estimated)
- Provision for credit loss to $3.45 billion
- Net Income down 53% yoy on “higher provision for credit losses and increased noninterest expense.”
We will be covering the conference call live at 8:00 Eastern.