JPMorgan Chase & Co.
Reported revenue rose 11% year-on-year to $42.8 billion. Net revenue (managed) was $43.7 billion (+10% Y/Y), beating the consensus of $41.707 billion.
Consumer & Community Banking (CCB) revenue rose 1% Y/Y to $18.362 billion, and Commercial & Investment Bank revenue was $17.598 billion (+18% Y/Y) in the quarter.
Investment Banking revenue was $2.6 billion, up 46% Y/Y, in the quarter. Investment Banking fees rose 49% Y/Y, led by higher fees across all products.
Asset and Wealth Management revenue was $5.8 billion (+13% Y/Y), and Corporate revenue stood at $2.00 billion (+13% Y/Y) in the quarter.
In AWM, Assets under management stood at $4.0 trillion, and client assets stood at $5.9 trillion (up 18%), driven by higher market levels and continued net inflows.
Net interest income fell 3% Y/Y to $23.5 billion in the quarter. Net interest income excluding Markets stood at $23.0 billion, down 2% Y/Y, due to lower rates and deposit margin compression along with lower deposit balances in CCB.
Noninterest revenue was $20.3 billion, up 29% Y/Y, in the quarter. Noninterest revenue, excluding Markets, increased 30% Y/Y to $13.7 billion, led by higher asset management fees in AWM and CCB, increased investment banking fees and lower net investment securities losses.
Noninterest expense decreased 7% Y/Y to $22.8 billion in the quarter. Average loans rose 2% Y/Y and up 1% quarter-over-quarter; average deposits were up 2% Y/Y and 1% Q/Q.
In CCB, Debit and credit card sales volume increased by 8% Y/Y, and active mobile customers were up 7% Y/Y.
In CIB, Market revenue rose 21% Y/Y, with Fixed Income Markets increasing 20% and Equity Markets up 22% in the quarter.
JPM's provision for credit losses was $2.6 billion (-5% Y/Y), including net charge-offs of $2.4 billion and a net reserve build of $267 million.
Net income rose 50% Y/Y to $14.0 billion in the quarter. EPS of $4.81 exceeded the consensus of $4.11.
The CET1 capital ratio stood at 15.7%, and the advanced CET1 capital ratio was 15.8%. The bank's capital distributions included a dividend per share of $1.25 and $4.0 billion of common stock net repurchases.
Outlook: JPMorgan expects FY25 net interest income, excluding Markets, of ~$90 billion and project card services NCO rate of ~3.60%.
Jamie Dimon, Chairman and CEO, said, "The U.S. economy has been resilient. Unemployment remains relatively low, and consumer spending stayed healthy, including during the holiday season. Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business."
"However, two significant risks remain. Ongoing and future spending requirements will likely be inflationary, and therefore, inflation may persist for some time. Additionally, geopolitical conditions remain the most dangerous and complicated since World War II."
Investors can gain exposure to the stock via IShares U.S. Financial Services ETF
Price Action: JPM shares are up 0.29% at $248.18 premarket at the last check Wednesday.
