Seeking Alpha

Loan demand and trading slowdown hits JPMorgan in Q1

  • Not too much of surprise to anyone paying attention in recent weeks - JPMorgan (JPM) misses badly on both lines and leads off its Q1 results press release with "given industry-wide headwinds in Markets and Mortgage."
  • Consumer & Community Banking revenue of $10.5B fell 10% from a year ago, with net income of $1.9B off 25%. Net interest income of $7B fell 3%. Noninterest revenue of $3.4B fell 22% as mortgage business continues to evaporate (off 68% from a year ago). Credit loss provisions rose to $816M from $549M a year ago. Noninterest expense of $6.4B fell 5% from last year as jobs were cut in mortgage banking.
  • Corporate & Investment Bank net income of $2B fell 24% from a year ago on revenue of $8.6B off 15% (DVA alters the numbers a bit, but not materially). Fixed income markets revenue of $3.8B fell 21% from last year.
  • Commercial Banking net income of $578M fell 3% from a year ago on revenue of $1.7B off 1%.
  • Dividend this quarter is going to $0.40 per share from $0.38. $400M of stock bought back in Q1; authorization of $6.5B through Q1 of 2015.
  • ROTCE of 13%; Basel III Tier 1 common ratio of 9.5%.
  • CC at 8:30 ET
  • Q1 results
  • Shares -2.4% premarket

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Comments (2)
  • bbro
    , contributor
    Comments (10255) | Send Message
     
    JPM trades 1.35 times tangible book value...
    11 Apr 2014, 07:24 AM Reply Like
  • june1234
    , contributor
    Comments (3113) | Send Message
     
    Slowing loan demand consistent with all recoveries. Not good when you cant beat already lowered expectations amid buybacks and dividend increases. Back to the recovery
    11 Apr 2014, 08:06 AM Reply Like
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