J.P. Morgan Company Earnings Surges to $6.5 Billion for Second Quarter

We would want investors to keep in mind that J.P. Morgan shares were up about 27% year-to-date and were up about 65% from their 52-week lows going into the earnings. The bank reported a stated book value per share of $52.54 versus $52.02 last quarter, and its tangible book value rose to $40.04 per share versus $39.54 per share.

J.P. Morgan shares closed at $55.14 on Thursday. Initially the stock was down 0.4% but the second wave of trading has shares up 0.4%. The consensus analyst price target is $58.29 per share. Here are some of the details that the analysts and investors will be looking at:

• Consumer and community banking deposits were up 10%.
• Mortgage originations were up 12% at $49.0 billion.
• Credit card sales volume was up 10% to a record $105.2 billion.
• Auto originations were up 17%.
• Client assets were up 10% to $2.2 trillion.
• Loan balances were a record $86.0 billion.
• Basel I Tier 1 common ratio was 10.4% at $147 billion.
• the estimated Basel III Tier 1 common ratio was 9.3%.
• Its estimated Basel III liquidity coverage ratio was 118%.

We would note that J.P. Morgan said earnings included several significant items: a $950 million pretax benefit ($0.15 per share increase), a $550 million pretax benefit ($0.09 per share increase) and a $600 million pretax expense ($0.09 per share after-tax decrease). These items may be acting as a drag against some of the enthusiasm.