Atlantic Equities analyst Richard Staite rates JPMorgan "overweight," with a price target of $54, and said in a report on Friday that excluding the 18-cent after-tax benefit from the reserve release and another two-cent benefit from debit valuation adjustments (DVA), "we calculate adjusted EPS of $1.38 vs our adjusted EPS estimate of $1.33."
JPMorgan Chase's shares declined 1% to close at $49.01.
First-quarter mortgage revenue totaled $2.8 billion, declining from $3.1 billion in the fourth quarter, and from $2.9 billion in the first quarter of 2012. First-quarter mortgage loan originations declined to $109 billion from $125 billion the previous quarter.Wells Fargo's net interest income declined to $10.5 billion from $10.6 billion in the fourth quarter and $10.9 billion in the first quarter of 2012. The net interest margin -- the difference between the average yield on loans and investments and the average cost for deposits and borrowings -- narrowed to 3.48% in the first quarter from 3.56% the previous quarter and 3.91% a year earlier. The declines in mortgage revenue and interest income were more than offset by declines in expenses. The quarterly provision for loan losses -- that is, the amount added to reserves in anticipation of losses on the loan portfolio -- declined to $1.2 billion in the first quarter, from $1.8 billion in the fourth quarter and $2.0 billion a year earlier. Wells Fargo saw continued improvement to its already solid credit quality, with its annualized ratio of net charge-offs to average loans declining to 0.72% in the first quarter from 1.05% the previous quarter and 1.25% a year earlier. The company said this was the lowest net charge-off ratio since the second quarter of 2006. Wells Fargo's total noninterest expense declined to $12.4 billion in the first quarter from $12.9 billion the previous quarter and $13.0 billion a year earlier. The company said that the sequential improvement was "primarily due to lower operating losses associated with the Independent Foreclosure Review settlement and a $250 million charitable contribution to the Wells Fargo Foundation in the fourth quarter."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV