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JPMorgan Chase Reports Second-Quarter 2014 Net Income Of $6.0 Billion, Or $1.46 Per Share, On Revenue1 Of $25.3 Billion

Stocks in this article: JPM

JPMorgan Chase & Co. (NYSE:JPM):

  • The Firm had strong underlying performance 2 , notwithstanding industry-wide headwinds in Markets and Mortgage
    • Consumer & Community Banking: average Consumer & Business Banking deposits up 9%; credit card sales volume 1 up 12%; record client investment assets up 19%; record Business Banking loan originations up 46%
    • Corporate & Investment Bank: maintained #1 ranking for Global Investment Banking fees with 8.2% wallet share YTD; assets under custody up 14%
    • Commercial Banking: period-end loan balances up 9%, driven by 14% growth in Commercial Real Estate; gross investment banking revenue with Commercial Banking clients up 25%
    • Asset Management: twenty-first consecutive quarter of positive net long-term client flows; record client assets up 15%; record loan balances up 17%
  • Second-quarter results 3 included as a significant item $500 million after-tax Firmwide legal expense ($0.13 per share after-tax decrease in earnings; $669 million pretax expense)
  • Approximately $3 billion returned to shareholders in 2Q14
    • Repurchased $1.5 billion of common equity 4
    • Increased common stock dividend to $0.40 per share
  • Fortress balance sheet maintained
    • Common Equity Tier 1 1,5 of $161 billion, or ratio of 9.8%
    • Strong liquidity – compliant with LCR 6 – HQLA 7 of $576 billion
    • Firm Supplementary Leverage Ratio ("SLR") 1,8 of 5.4%
  • Core loans 1 up 8% compared with the prior year
  • JPMorgan Chase supported consumers, businesses and our communities
    • $1.0 trillion of credit and capital raised for the first six months of 2014 1
      • $93 billion of credit for consumers
      • $10 billion of credit for U.S. small businesses
      • $296 billion of credit for corporations
      • $611 billion of capital raised for clients
      • $33 billion of credit and capital raised for nonprofit and government entities, including states, municipalities, hospitals and universities
    • Hired over 7,200 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 second quarter.

3 Second quarter results also included other, less significant open (positive and negative) non-core items.

4 The repurchase amount is presented on a trade-date basis.

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

6 Liquidity Coverage Ratio ("LCR") is based on the current understanding of the proposed rules.

7 HQLA (“High Quality Liquid Assets”) is the estimated amount of assets that will qualify for inclusion in the Basel III Liquidity Coverage Ratio.

8 Reflects the U.S. Final Leverage Ratio NPR issued on April 8, 2014.

 

JPMorgan Chase & Co. (NYSE:JPM) today reported net income for the second quarter of 2014 of $6.0 billion, compared with net income of $6.5 billion in the second quarter of 2013. Earnings per share were $1.46, compared with $1.60 in the second quarter of 2013. Revenue 1 for the quarter was $25.3 billion, down 2% compared with the prior year. The Firm’s return on tangible common equity 1 for the second quarter of 2014 was 14%, compared with 17% in the prior year. Core loans increased by 8% compared with the prior year. The Firm repurchased $1.5 billion of common equity in the second quarter.

Jamie Dimon, Chairman and Chief Executive Officer, commented on the financial results: “Despite continued industry-wide headwinds in Markets and Mortgage, the firm has continued to deliver strong underlying performance. Consumer & Community Banking deposit growth and card sales volume both outpaced the industry 2, and we had record loan originations in Business Banking. The Corporate & Investment Bank saw strong performance in fees with #1 position in Global IB fees YTD, global debt and equity, global syndicated loans and global long-term debt. Commercial Banking clients generated record investment banking revenues in the first half of the year. Asset Management had excellent performance across all measures.”

Dimon continued: “Toward the end of the second quarter, we saw encouraging signs across our businesses including an uptick in wholesale utilization, strengthening pipelines in our commercial and business banking segments, and some improvements in markets activity. While it is too early to assume that this momentum will continue, we have confidence in the long-term growth of the economy.

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