How the House of Morgan Won Earnings

Banking, finance, and taxes

Published: July 14, 2016 10:10 am

Last Updated: January 13, 2020 5:44 am

JPMorgan Chase & Co. (NYSE: JPM) reported its second-quarter financial results before the markets opened on Thursday. Known as the bank with the ironclad balance sheet, JPMorgan impressed yet again with its most recent earnings report. With this win JPMorgan is propping up the other major banks in the United States, because they believe that their earnings will be in line as well.

Considering the recent uncertainty and turbulence in the markets from the Brexit, JPMorgan continued to be there for its clients and provided a solid and steadfast base. Even the Fed thought so when it had no objection to this megabank’s capital relocation plan.

The company said that it had $1.55 in earnings per share (EPS) on $24.4 billion in revenue. The consensus estimates from Thomson Reuters had called for $1.43 in EPS on revenue of $24.16 billion. The same period from last year had $1.54 in EPS on $24.53 billion in revenue.

A couple quick stats the company gave were as follows:

Tangible book value increased by 9% to $50.31.
The Basel III common equity tier 1 capital totaled $179 billion, an increase of 11.9%.
Noninterest expense was $13.6 billion, down 6%, driven by lower legal expense and continued expense reduction initiatives.
$4.4 billion was returned to shareholders in the second quarter through $2.6 billion in net purchases and a common dividend of $0.48 per share.

Jamie Dimon, chairman and CEO of JPMorgan, commented on the financial results:

JPMorgan Chase continued to perform well in all of our major businesses. We saw strong underlying performance with record consumer deposits (up 10%), credit card sales volume (up 8%), merchant processing volume (up 13%) and broad core loan growth (up 16%) – particularly in mortgage and commercial real estate. Outside of energy, both wholesale and consumer credit quality remained very good.

Shares of JPMorgan were up 2.3% to $64.54 after about half an hour of trading on Thursday. The consensus analyst price target is $69.93, and the 52-week trading range is $50.07 to $70.61.

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