JPMorgan beats, investment bank has a record quarter

Jamie DimonGetty/Win McNameeJPMorgan CEO Jamie Dimon.

JPMorgan reported first-quarter net income of $US6.4 billion, or $US1.65 a share.

“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,” JPMorgan CEO Jamie Dimon said in a statement.

The numbers included a $US373 million tax credit. Stripping that out, earnings were $US1.58 a share, ahead of analyst expectations of $US1.52.

“We view this release as Solid and Positive,” Credit Suisse said in a note.

The performance was driven by strong gains in corporate and investment banking and commercial banking, with both posting record income. Consumer and community banking profits dropped.

Here are the headline numbers:

  • Company-wide net income: $US6.4 billion, up 17%.
  • Company-wide managed revenue: $US25.6 billion, up 6%.
  • Consumer and Community Banking net income: $US2 billion, down 20%.
  • Corporate and Investment Bank net income: $US3.2 billion, up 64%.
  • Commercial Banking net income: $US799 million, up 61%.
  • Asset and wealth management net income: $US385 million, down 34%.

The strong performance in the investment bank was helped by a better-than-expected performance in trading. Markets and investor services revenue, at $US6.5 billion, were up 13% year-on-year, with the fixed income, currencies, and commodities business enjoying a strong start to the year. The bank said the securitized products, rates, and credit units all had a strong quarter.

Multiple units in the bank posted a record quarter (emphasis ours):

  • Corporate and Investment Bank: “Record net income and Investment Banking fees for a first quarter of $US3.2 billion, up 64% and $US1.8 billion, up 37%, respectively.”
  • Commercial Bank: “Record revenue of $US2.0 billion, up 12%; record net income of $US799 million, up 61%.”
  • Asset and wealth management: “Record average loan balances of $US118 billion, up 7%; record average deposit balances of $US159 billion, up 5%. Record assets under management (“AUM”) of $US1.8 trillion, up 10%.”

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