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JPMorgan Chase Reports Second-Quarter 2013 Net Income Of $6.5 Billion, Or $1.60 Per Share, On Revenue1 Of $26.0 Billion

Stocks in this article: JPM

JPMorgan Chase & Co. (NYSE: JPM):

  • Strong performance across our businesses 2
    • Consumer & Community Banking deposits were up 10%; mortgage originations were $49.0 billion, up 12%; Credit Card sales volume 1 was a record $105.2 billion, up 10%; auto originations were up 17%
    • Corporate & Investment Bank reported strong performance in Banking and Markets & Investor Services, maintaining its #1 ranking for Global Investment Banking fees; client deposits were $369.1 billion, up 6%
    • Asset Management achieved its seventeenth consecutive quarter of positive net long-term client flows, with $25 billion for the second quarter; client assets were $2.2 trillion, up 10%; loan balances were a record $86.0 billion
  • Second-quarter common stock dividend increased to $0.38 per share from the previous quarter's $0.30 per share, returning to its highest level
  • Fortress balance sheet strengthened
    • Basel I Tier 1 common 1 of $147 billion, or 10.4%
    • Estimated Basel III Tier 1 common 1 ratio of 9.3%, including the estimated impact of final Basel III rules issued on July 2, 2013
    • High Quality Liquid Assets 3 of $454 billion; estimated Basel III Liquidity Coverage Ratio of 118%
  • Second-quarter results included the following significant items
    • $950 million pretax benefit ($0.15 per share after-tax increase in earnings) from reduced loan loss reserves in Real Estate Portfolios
    • $550 million pretax benefit ($0.09 per share after-tax increase in earnings) from reduced loan loss reserves in Card Services
    • $600 million pretax expense ($0.09 per share after-tax decrease in earnings) for additional litigation reserves in Corporate
  • JPMorgan Chase supported consumers, businesses and our communities
    • $1.0 trillion of credit 1 provided and capital raised in the first six months of 2013

      - $154 billion of credit 1 provided for consumers; originated more than 500,000 mortgages

      - $9 billion of credit 1 provided for U.S. small businesses

      - $294 billion of credit 1 provided for corporations

      - $552 billion of capital raised for clients

      - $35 billion of credit 1 provided and capital raised for nonprofit and government entities, including states, municipalities, hospitals and universities

  • Hired more than 5,600 U.S. veterans and service members since the beginning of 2011

1

For notes on non-GAAP measures, including managed basis reporting, see page 12. For additional notes on financial measures, see page 13.

2

Percentage comparisons noted in the bullet points are calculated versus prior-year second quarter.

3

High Quality Liquid Assets (“HQLA”) is the estimated amount of assets the Firm believes will qualify for inclusion in the Basel III Liquidity Coverage Ratio based on its current understanding of the proposed rules.

 
 

NEW YORK, July 12, 2013 -- JPMorgan Chase & Co. (NYSE: JPM) today reported net income of $6.5 billion for the second quarter of 2013, compared with net income of $5.0 billion in the second quarter of 2012. Earnings per share were $1.60, compared with $1.21 in the second quarter of 2012. Revenue 1 for the quarter was $26.0 billion, compared with $22.9 billion in the prior year. The Firm's return on tangible common equity 1 for the second quarter of 2013 was 17%, compared with 15% in the prior year.

Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial results: “Our earnings reflected strong performance across our businesses. We maintained our #1 ranking in Global Investment Banking fees. Consumer deposits were up 10% compared with the prior year and Credit Card sales volumes were a record $105.2 billion, up 10%. And notably, Asset Management had $25 billion of net long-term client flows, the seventeenth consecutive quarter of positive net long-term client flows. Net charge-offs remain near historical lows in our Credit Card business, have dropped to less than half of what they were a year ago for our Real Estate Portfolios and remained very low in our wholesale portfolios. In light of these trends, we reduced the allowance for loan losses in Consumer & Community Banking in the second quarter by a total of $1.5 billion. Loan growth across the industry continued to be soft, reflecting a cautious stance by consumers, many small businesses and corporations. However, we continue to see broad-based signs that the U.S. economy is improving and we are hopeful that, as jobs are added and confidence builds, the U.S. economy will strengthen over time.”

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