JPMorgan Offers Some Hope Despite Rough Q1

By Chris Lange Published Apr 14, 10:07AM EDT

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JPMorgan Offers Some Hope Despite Rough Q1 — © Wikimedia Commons

JPMorgan Chase & Co. (NYSE: JPM | JPM Price Prediction) reported its first-quarter financial results before the markets opened on Tuesday. The megabank said that it had $0.78 in earnings per share (EPS) and $29.1 billion in revenue, compared with consensus estimates that called for $1.84 in EPS and revenue of $29.67 billion. The same period of last year reportedly had EPS of $2.65 on $29.67 billion in revenue.

During the most recent quarter, loans increased 6% year over year, or 9% excluding the impact of loan sales in Home Lending. End of period deposits increased 23%.

Book value per share increased 6% year over year to $75.88, while tangible book value increased 5% to $60.71.

In terms of its segments, the bank reported as follows:

Consumer & Business Banking net revenues decreased 2.4% year over year to $13.17 billion.
Corporate & Investment Banking net revenues decreased by 0.9% to $9.95 billion.
Commercial Banking net revenues decreased by 9.7% to $2.18 billion.
Asset & Wealth Management net revenues increased 3.4% to $3.61 billion.

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Jamie Dimon, board chair and chief executive, commented:

The first quarter delivered some unprecedented challenges and required us to focus on what we as a bank could do – outside of our ordinary course of business – to remain strong, resilient and well-positioned to support all of our stakeholders. In Consumer & Community Banking, we have remained focused on meeting our customers’ needs. Approximately three quarters of our 5,000 branches have been open – all with heightened safety procedures and many with drive-through options – and the vast majority of our over 16,000 ATMs remain open. In March alone, we opened half a million new accounts for our card customers and extended over $6 billion of new and increased credit lines, and we were active in Home Lending and Auto. We lent over $500 million to small businesses in the month and we’re now actively supporting the SBA’s Paycheck Protection Program. For the quarter, we continued to see flows into both client investment assets and deposits

JPMorgan stock traded up 1% to $99.56 Tuesday morning. The 52-week range is $76.91 to $141.10, and the consensus price target is $107.31.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.