JPMorgan Chase released the earnings results from the first quarter before opening bell this morning, posting earnings of $1.35 per share and revenues of $24.1 billion. Analysts were expecting earnings of $1.26 per share and $23.8 billion in revenues.
Investment bank income weighs on JPMorgan Chase’s profits
JPMorgan Chase’s profits declined 6.7% year over year as the bank’s costs for covering loans to energy companies climbed and investment bank and trading revenues fell. The first quarter included 13 cents per share in items stemming from a $479 million charge for wholesale credit costs. The bank said average core loans climbed 17% year over year, and tangible book value per share rose 8% to $48.96. The Basel III Common Equity tier 1 Capital ratio was 11.7% at $176 billion.
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JPMorgan said it raised $496 billion in credit and capital so far year to date and $59 billion of consumer credit and $6 billion in U.S. small business credit. The bank also raised $160 billion for corporations, $251 billion for corporate clients and non-U.S. governments and $20 billion for non-profits and U.S. government agencies.
JPMorgan’s results by segment
The Consumer and Community Banking segment recorded an increase in net revenue from $10.7 billion a year ago to $11.1 billion this year. The segment had almost 24 million active mobile customers in the first quarter, a 19% year over year increase. Average core loans in the segment rose 25%, while average deposits for the segment saw record growth of 10%, bringing them to $50 billion.
The Corporate and Investment Bank business saw net revenues fall from $9.6 billion a year ago to $8.1 billion this year. The Commercial Banking business’ net revenue ticked higher from $1.7 billion in last year’s first quarter to $1.8 billion in this year’s first quarter. Net revenues for Asset Management were essentially flat year over year at $3 billion, while Corporate revenue rose from -$213 million to $56 million.
Shares of JPMorgan stock surged in premarket trading, climbing 3% to as high as $61.10 per share following this morning’s earnings release.