JPMorgan Chase Shares Rise on Record Revenue and Profit

JPMorgan Chase & Co. (NYSE: JPM) reported its first-quarter financial results on Friday morning during pre-market hours. The bank topped analysts’ expectations and also reported record revenue and profit for the quarter, sending shares 4% at the opening bell.

For the quarter, JPMorgan reported earnings of USD 2.65 per share on revenue of USD 29.9 Billion. Analysts expected earnings of USD 2.35 per share on revenue of USD 28.4 Billion.

Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial results: “In the first quarter of 2019, we had record revenue and net income, strong performance across each of our major businesses and a more constructive environment. Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong.”

Consumer and Community Banking average core loans rose by 4% and average deposits was up 3%. Client investment assets jumped by 13% to USD 312 Billion in the quarter. Credit card sales volume was up 10% and merchant processing volume increased by 13%.

Corporate and Investment Bank maintained its #1 rank for Global Investment Banking fees with 9.6% wallet share in the quarter. Debt underwriting revenue surged by 21% to USD 935 Million. Advisory revenue also rose by 12% to USD 644 Million. However, total markets revenue fell by 17% to USD 5.5 Billion or 10% at an adjusted rate.

Although JPMorgan’s trading segment decline year-over-year, the segment’s revenue still surpassed analysts’ estimates. FICC sales and trading revenue was USD 3.73 in the quarter, topping estimates of USD 3.67 Billion. Equity sales and trading revenue reported 1.74 Billion, narrowly edging estimates of USD 1.73 Billion. Investment banking revenue came in at USD 1.75 Billion, edging estimates of USD 1.63 Billion.

Commercial Banking revenue reported a record of USD 818 Million for the quarter, increasing by 44% year-over-year.

JPMorgan’s Asset and Wealth Management segment reported an increase of 10% in average loan balance and assets under management rose by 4% to USD 2.1 Trillion.

JPMorgan’s better-than-expected quarter sent other bank stocks higher on Friday as well. Citigroup (NYSE: C) shares were trading 2.77% higher, Bank of America (NYSE: BAC) jumped by 3.1%, and Goldman Sachs (NYSE: GS) increased by 2.4%.

4 Comments
  1. Dillon Harper 2 months ago
    Reply

    $JPM this is going to be very interesting. Some how JP Morgan will have a great year while other banks are forecasting lower interest income. Yes each bank is different but this looks a bit shady reaction. Shorting at 110.70

  2. Alexander Matthews 2 months ago
    Reply

    dare I say that financials actually look somewhat constructive right here?

    • Dan Pitre 2 months ago
      Reply

      Ready for a nice EOD rally. $SPX has established itself above 2900 all day with nice leadership from $JPM $BAC $GS $BA $SMH. $SPX 2925 is well-deserved and should see 2950-3000 as we get deeper into earnings season. Strong profits everywhere plus low rates.

  3. Nicholas Santiago 2 months ago
    Reply

    $JPM can triple, no interest, Out. There is only 1 really good r/r trade today and I’ve taken it. If I lose money…too bad. It was right to take it.

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