Stocks

Bank of America, JPMorgan Beat Earnings Estimates, Split On Revenue

Bank of America and JPMorgan Chase released their latest earnings reports before opening bell this morning. Bank of America posted earnings of 40 cents per share, marking a 48% year over year increase from the year-ago quarter’s 27 cents per share. Revenue came in at $20 billion, a 2% year over year increase from $19.6 billion in the same quarter a year ago. Analysts had been expecting earnings of 38 cents per share and $20.87 billion in revenue.

JPMorgan Chase reported earnings of $1.71 per share on $23.4 billion in revenue, compared to the consensus estimates of $1.42 per share and $23.91 billion in revenue. The bank reported $1.32 per share in earnings and $23.75 billion in revenue in the year-ago quarter.

Bank of America

Bank of America records solid growth

Bank of America’s net interest income grew 6% to $10.3 billion, while provision for credit losses fell to $774 million from $810 million a year ago. Net charge-offs fell to $880 million from $1.1 billion in the year-ago quarter. The net charge-off ratio fell to a historic low of 0.39%. Book value per share increased 7% to $24.04, while tangible book value per share grew 9% to $16.95.

The Consumer Banking segment recorded a $20.1 billion increase in loans and $55 billion increase in deposits. The Global Wealth and Investment Management division saw its total client balances grow $50.5 billion to surpass $2.5 trillion, while Global Banking deposits grew $10.3 billion. Global Banking loans increased $15.6 billion. Sales and Trading revenue reached $2.8 billion.

Shares of Bank of America edged lower by as much as 0.79% to $22.74 during premarket trading.

JPMorgan's Chris Ventresca & Elizabeth Myers

JPMorgan Chase also records solid growth

JPMorgan Chase’s average core loans grew 12%. The Consumer and Community Banking segment recorded $11.02 billion in revenue, compared to $11.22 billion in the year-ago quarter. The bank’s Corporate and Investment Bank segment’s net revenue grew to $8.5 billion from $7.07 billion a year ago. JPMorgan’s Commercial Banking net revenue increased to $1.96 billion from $1.76 billion in the year-ago quarter. Asset Management’s net revenue rose to $3.09 billion from $3.05 billion a year ago.

JPMorgan cut its provision for credit losses in the fourth quarter, reporting $864 million versus $1.25 billion in the year-ago quarter. The bank’s return on common equity grew to 11% from 9% in the previous year’s fourth quarter.

Shares of JPMorgan Chase edged upward by as much as 0.31% to $86.50 in premarket trades.