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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
Comments (2)
  • bbro
    , contributor
    Comments (9621) | Send Message
     
    JPM trades 1.35 times tangible book value...
    11 Apr, 07:24 AM Reply Like
  • june1234
    , contributor
    Comments (2599) | 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, 08:06 AM Reply Like
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