What's Going On With JPMorgan Shares Today?

JPMorgan Chase & Co. JPM shares are trading lower after it reported first-quarter FY24 results.

Net revenue (managed) of $42.5 billion (+8% Y/Y), beating the consensus of $41.8 billion.

Reported revenue was $41.9 billion in the quarter, up 9% Y/Y. Consumer & Community Banking (CCB) revenue increased 7% Y/Y to $17.7 billion, Corporate & Investment Banking was $13.6 billion (flat Y/Y), and Commercial Banking was $4.0 billion (+13% Y/Y). 

Investment Banking fees were up 21% Y/Y, led by higher debt and equity underwriting fees. Asset and Wealth Management revenue was $5.1 billion (+7% Y/Y), and Corporate revenue stood at $2.2 billion in the quarter.

Net interest income increased by 11% Y/Y to $23.2 billion and +5% Y/Y, excluding First Republic. 

Noninterest revenue was $19.3 billion, up 5% Y/Y, or up 3% Y/Y excluding First Republic, driven by higher asset management and Investment Banking fees.

Noninterest expense was $22.8 billion, up 13% Y/Y, or +9% Y/Y, excluding First Republic.

Excluding an item resulted in an increase of $550 million (after tax) to reported net income from $13.4 billion to $14.0 billion and an increase of $0.19 per share to reported EPS from $4.44 to $4.63. EPS was $4.44, beating the consensus of $4.15. 

Average loans were up 16%, or up 3%, excluding First Republic; average deposits were up 2%, or flat excluding First Republic.

In CCB, Debit and credit card sales volume increased by 9% Y/Y, and Active mobile customers were up 7% Y/Y. 

Also Read: JPMorgan Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

JPM’s provision for credit losses was $1.9 billion (-17% Y/Y), including net charge-offs of $2.0 billion and a net reserve release of $72 million. 

In AWM, Assets under management (AUM) stood at $3.6 trillion (+19% Y/Y), and client assets stood at $5.2 trillion (+20% Y/Y), driven by higher market levels and continued net inflows.

CET1 capital ratio stood at 15.0%, and the advanced CET1 capital ratio was 15.3%, with a total loss-absorbing capacity of $520 billion.

Outlook FY24: JPMorgan now expects net interest income, excluding Markets, of ~$89 billion (vs. $88 billion earlier).

The bank anticipates card services NCO rate of <3.50%.

Jamie Dimon, Chairman and CEO, said, “Many economic indicators continue to be favorable. However, looking ahead, we remain alert to a number of significant uncertain forces. First, the global landscape is unsettling – terrible wars and violence continue to cause suffering, and geopolitical tensions are growing. Second, there seems to be a large number of persistent inflationary pressures, which may likely continue.” 

“And finally, we have never truly experienced the full effect of quantitative tightening on this scale. We do not know how these factors will play out, but we must prepare the Firm for a wide range of potential environments to ensure that we can consistently be there for clients.”

Also Read: Jamie Dimon Equates AI To Printing Press, Steam Engine: ‘Consequences Will Be Extraordinary’

Investors can gain exposure to the stock via IShares U.S. Financial Services ETF IYG and IShares U.S. Financial ETF IYF.

Price Action: JPM shares are down 2.83% at $189.89 premarket on the last check Friday.

Photo by Katherine Welles on Shutterstock