JPMorgan Chase & Co. (NYSE:JPM) released its Q1 2018 earnings report before opening bell this morning. JPMorgan Chase earnings amounted to $2.37 per share on $28.5 billion in revenue. Analysts had been expecting the bank to report $2.28 per share in earnings on $27.68 billion in revenue. In last year’s first quarter JPMorgan Chase earnings amounted to $1.65 per share on $25.85 billion in revenue.
JPMorgan Chase earnings for Q1 2018
The Q1 2018 JPMorgan earnings result includes a gain of 11 cents per share due to changes to the firm’s accounting methods. Net interest income grew 9% year over year to $13.5 billion, just edging out the consensus at $13.3 billion. Market & investor services revenue grew 15% to $7.48 billion.
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Average core loans grew 8%, while average deposits increased 6% year over year to $660 billion. Client investment assets grew 13% to $276 billion as the firm reported record net flows. Credit card sales volume increased 12%, while merchant processing volume increased 15%.
Corporate and investment banking revenue rose to $10.5 billion from $9.6 billion a year ago. Analysts had been looking for $10.3 billion. Commercial banking revenue ticked up to $2.17 billion from $2 billion last year, also beating the consensus at $1.9 billion. Asset & wealth management revenue rose to $3.5 billion from $3.3 billion a year ago. Analysts had been expecting $3.3 billion. Consumer & community banking revenue jumped from $11 billion a year ago to $12.6 billion in Q1 2018. The consensus was $12 billion. Investment banking revenue fell to $1.6 billion.
Dimon is optimistic about U.S. tax reform
JPMorgan Chase reported a book value per share of $67.69, a 4% increase year over year, and a tangible book value per share of $54.05, which was also a 4% increase. The firm’s Basel III common equity Tier 1 capital level was at $184 billion with a ratio of 11.8%.
“The global economy continues to do well, and we remain optimistic about the positive impact of tax reform in the U.S. as business sentiment remains upbeat, and consumers benefit from job and wage growth,” Chairman and Chief Executive Jamie Dimon said in a statement with the JPMorgan Chase earnings release. “We are committed to doing our part — and this company can be an engine that helps drive inclusive economic growth for all Americans, including our $20 billion long-term investment in our employees and communities, and we’re working to tackle broader issues, like healthcare, that can help the whole country.”
Following the JPMorgan earnings release for Q1 2018, the firm’s stock rose by as much as 1.17% to $114.70 per share ahead of opening bell.