NEW YORK CITY (dpa-AFX) - Financial services giant JPMorgan Chase & Co. (JPM) Friday reported 33 percent jump in first-quarter profit, that beat analysts' expectations. The result reflects strong growth in Corporate & Investment Banking business, as well as lower expenses and provision for credit losses. Total revenues declined and missed view.
Looking ahead, the firm sees positive signs that the economy is healthy and getting stronger. Loan growth across the industry has been softer in the quarter, however, growth remained strong compared to the prior year.
Jamie Dimon, chairman and chief executive officer of the company stated, 'JPMorgan Chase had a very good start to the year. All our businesses had strong performance, and our client franchises did exceptionally well.'
In the first quarter the company's net income increased to $6.53 billion or $1.59 per share from $4.92 billion or $1.19 per share in the previous year. On average, 30 analysts polled by Thomson Reuters expected earnings per share of $1.40 for the quarter. Analysts' estimates typically exclude one-time items.
Results for the first quarter included $0.10 per share increase in earnings from reduced mortgage loan loss reserves in Real Estate Portfolios, $0.08 per share rise in earnings from reduced credit card loan loss reserves in Card Services.
Total net revenues for the quarter, on a reported basis, declined 4 percent to $25.12 billion, which also came in below analysts' estimate of $25.97 billion. On a managed basis, revenues were $25.85 billion, down 3 percent from the preceding year.
Total non-interest expense dropped 16 percent to $15.42 billion. Provision for credit losses was $617 million, down 15 percent from last year.
Segment-wise, Consumer & Community Banking or CCB revenues declined 6 percent to $11.62 billion and net income was $2.59 billion, down 12 percent from last year. Corporate & Investment Bank revenues grew 9 percent to $10.14 billion. Net income climbed 28 percent to $2.61 billion.
Commercial Banking net revenue edged up 1 percent to $1.67 billion and net income also slightly improved to $596 million from $591 million a year ago. Asset Management net income climbed 26 percent to $487 million and net revenues were up 12 percent to $2.65 billion.
The company said it saw strong performance in its credit card portfolio and sales volume was up 9 percent from a year ago.
The firm's return on tangible common equity for the first quarter was 17 percent , compared with 15 percent in the prior year.
During the quarter, the company repurchased $2.6 billion of common equity.
According to the firm, the Federal Reserve has asked it to submit by the end of the third quarter an additional capital plan, addressing the weaknesses it identified in its capital planning processes. Following their review, the Federal Reserve may require the firm to modify its capital distributions.
JPM closed Thursday's regular trading at $49.31 on the NYSE. In the pre-market activity, the shares are down 0.83 percent.
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