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JPMorgan Chase Reports First-Quarter 2014 Net Income Of $5.3 Billion, Or $1.28 Per Share, On Revenue1 Of $23.9 Billion

Stocks in this article: JPM

JPMorgan Chase & Co. (NYSE:JPM):

  • The Firm had solid underlying performance 2 , given industry-wide headwinds in Markets and Mortgage
    • Consumer & Community Banking: average Consumer & Business Banking deposits up 9%; credit card sales volume 1 up 10%; record client investment assets up 16%; Business Banking loan originations up 22%
    • Corporate & Investment Bank: maintained #1 ranking for Global Investment Banking fees with 8.2% wallet share; assets under custody up 10%
    • Commercial Banking: period-end loan balances up 7%, driven by 15% growth in Commercial Real Estate; gross investment banking revenue with Commercial Banking clients up 31%
    • Asset Management: twentieth consecutive quarter of positive net long-term client flows; record client assets up 10%; record average loan balances up 20%
  • The Board intends to increase the second quarter common stock dividend from the current $0.38 per share to $0.40 per share 3 ; the Firm repurchased $0.4 billion of common equity in the first quarter and is authorized to repurchase $6.5 billion of common equity through the first quarter of 2015
  • Fortress balance sheet maintained
    • Basel III Tier 1 common 1,4 of $156 billion, or 9.5%
    • Strong liquidity — High Quality Liquid Assets (“HQLA”) 5 of $538 billion
    • Firm Supplementary Leverage Ratio ("SLR") 1,6 of 5.1% including the impact of the U.S. NPR announced this week
  • JPMorgan Chase supported consumers, businesses and our communities
    • $455 billion of credit and capital raised in the first quarter 1
      • $47 billion of credit for consumers
      • $5 billion of credit for U.S. small businesses
      • $138 billion of credit for corporations
      • $253 billion of capital raised for clients
      • $12 billion of credit and capital raised for nonprofit and government entities, including states, municipalities, hospitals and universities
    • Hired over 6,700 U.S. veterans and service members since 2011

1

 

For notes on non-GAAP financial 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 the prior-year first quarter.

3

The Firm’s dividends are subject to the Board’s approval at the customary times those dividends are declared.

4

Represents the estimated impact of Basel III Advanced fully phased-in capital rules the Firm will be subject to as of January 1, 2019.

5

HQLA is the estimated amount of assets that will qualify for inclusion in the Basel III Liquidity Coverage Ratio.

6

Estimated.

 

JPMorgan Chase & Co. (NYSE:JPM) today reported net income for the first quarter of 2014 of $5.3 billion, compared with net income of $6.5 billion in the first quarter of 2013. Earnings per share were $1.28, compared with $1.59 in the first quarter of 2013. Revenue 1 for the quarter was $23.9 billion, down 8% compared with the prior year. The Firm’s return on tangible common equity 1 for the first quarter of 2014 was 13%, compared with 17% in the prior year.

As previously announced, the Board of Directors intends to increase the second-quarter common stock dividend to $0.40 per share 3 from the current $0.38 per share; and the Board has also authorized the Firm to repurchase $6.5 billion of common equity commencing within the second quarter of this year through the end of the first quarter of 2015. During the first quarter of 2014, the Firm repurchased $0.4 billion of common equity. The Federal Reserve Board informed the Firm that it does not object to the Firm’s proposed 2014 capital distribution plan.

Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial results: “JPMorgan Chase had a good start to the year, given there were industry-wide headwinds in Markets and Mortgage. Consumer & Community Banking deposit growth and card sales volume both remain above the industry average 2, and we have made significant progress in Business Banking originations – up 22%. The Corporate & Investment Bank was #1 in Global IB fees, with #1 positions in global debt and equity, global syndicated loans and global long-term debt. Gross investment banking revenue with Commercial Banking clients was up 31%. Asset Management had its twentieth consecutive quarter of positive net long-term client flows and had record loan balances, up 20%.”

Dimon continued: “We have growing confidence in the economy – consumers, corporations and middle market companies are in increasingly good financial shape and housing has turned the corner in most markets – and we are doing our part to support the recovery. JPMorgan Chase provided credit and raised capital of over $450 billion for our clients during the first quarter of 2014, which included $5 billion for U.S. small businesses.”

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