12 Apr

JPMorgan Chase Reported Strong Q1 Numbers


Key takeaways

JPMorgan Chase (JPM) reported stronger-than-expected first-quarter numbers on April 12. The bank beat analysts’ estimate due to its higher net interest income and share buybacks. Analysts expected JPMorgan Chase’s revenues to stay flat in the first quarter, which would reflect lower market revenues.

As expected, JPMorgan Chase’s market revenues fell 17% in the first quarter. However, higher net interest income and growth in non-interest revenues helped the bank beat analysts’ estimate. The higher interest rate and increased loans and deposits supported the growth in the net interest income. Higher auto lease income and increased investment banking fees drove the non-interest income.

JPMorgan Chase Reported Strong Q1 Numbers

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

JPMorgan Chase’s results show that banks are still befitting from the higher interest rate. Citigroup (C) and Bank of America (BAC) could also gain from the higher interest rate. Sustained growth in lending and deposits is expected to drive their net interest income in the first quarter. However, challenges in the market-sensitive products are expected to remain a drag.

The higher net interest income, growth in investment banking fees, and share repurchases drove JPMorgan Chase’s first-quarter earnings, which beat analysts’ estimate. However, higher provisions remained a drag.

Financial metrics

JPMorgan Chase posted revenues of $29.9 billion in the first quarter, which increased ~5% on a YoY (year-over-year) basis and beat analysts’ estimate of $28.4 billion. JPMorgan Chase posted an adjusted EPS of $2.65, which beat analysts’ estimate of $2.35 and increased ~12% on a YoY basis. However, the provisions for credit losses increased by $330 million to $1.5 billion.

Latest articles

US crude oil production has more than doubled since 2009 and grew by 1.1% over the last year. Currently, there are 133 operable refineries in the US.

The cannabis industry is fighting against the ongoing US-China trade war and recessionary worries, which have hurt valuations across the global market.

Higher revenues, increased ticket prices, and lower fuel costs are likely to drive American Airlines' Q3 earnings higher despite its Boeing MAX woes.

HEXO plans to report its Q4 earnings before the market opens on October 24. October has been tough for Hexo, with its stock falling 31.2% as of October 18.

Today, Advanced Micro Devices (AMD) rose 4% to over $32, making it one of the top Nasdaq gainers. Morgan Stanley raised its price target for AMD stock.

Early in 2019, President Donald Trump warned that China could overtake the US as a global power. He vowed that this would not happen under his leadership.