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The first quarter earnings season has begun and the big banks are still among the first companies to publish their results. Before the opening of the market on Friday, JPMorgan Chase (NYSE: JPM) opened the way by publishing his figures.
To the delight of its shareholders, the financial institution started things in style. The bank has far exceeded expectations, both in terms of results and results, and its results seem rather solid.
Source of the image: JPMorgan Chase.
In numbers
To be sure, the numbers at the top and bottom rarely tell the whole story of a company's performance. Nevertheless, these figures can give us the general tone of the pbadage of a quarter.
On that note, JPMorgan Chase earned $ 2.65 per share for the quarter, up from $ 2.35 per share. And revenues of $ 29.9 billion exceeded expectations by $ 1.5 billion. It's a large beaten, and it is certainly worth explaining why the stock is up more than 4% after the gains.
To get a true picture of the bank's business situation and its performance against peers, it is necessary to look beyond key figures. But by digging a little more, it becomes clear that JPMorgan is doing well in all areas. As CEO, Jamie Dimon said, "we had record revenues and earnings, solid performance in each of our core businesses and a more constructive environment"
Here are some key facts investors should know about T1:
- JPMorgan Chase generated an impressive return on equity of 16%. Although we have not yet heard of two of the "Big Four" banks (Wells Fargo also reported on Friday morning), I would be shocked if it was not the highest ROE among them.
- The personal loan portfolio increased by 4% from a year ago and deposits by 3%.
- Credit cards continue to drive growth, with sales up 10% year-over-year.
- JPMorgan Chase's corporate and investment banking activities were good, with a 12% increase in consulting revenues and 21% growth in accounts receivable. The investment bank's revenues increased by 44% compared to last year, reaching a record for the bank.
- Net interest income rose 8% from one year to the next thanks to rising market interest rates. Profits from the bank's personal lending business increased by 19%, which was particularly strong.
- The company spent $ 4.7 billion on share buybacks, repurchasing approximately 1.3% of its outstanding shares in the first quarter.
A good start to the season results
It's hard to criticize anything in JPMorgan Chase's first quarter report. Many experts feared that this quarter's earnings will be small, but based on JPMorgan Chase and Wells Fargo (NYSE: WFC), which also reported Friday, things might not turn out so bad after all.
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