Investment banking drives JPM beat; consumer results weaken

|By:, SA News Editor

Q1 net income of $6.4B or $1.65 per share vs. $5.52B and $1.35 one year ago. ROTCE of 13% vs. 12%.

Net interest income of $12.4B up 6% thanks to loan growth and higher interest rates.

Noninterest revenue of $13.2B up 6% thanks to a 17% increase in revenue in the Corporate & Investment Bank, offset by new account origination costs in Card, and lower MSR risk management results.

Nonintrest expense of $15B up 9% thanks to higher compensation and legal expense, auto lease depreciation, and FDIC-related expense.

Consumer & Business Banking income of $1.988B down 20% Y/Y, with mortgage banking revenue of $1.529B down 18%, Card, Commerce Solutions, and Auto revenue of $4.535B down 3%. Provisions for credit losses of $1.43B up 36% Y/Y, driven by a write-down of the student loan portfolio which was transferred to held-for-sale, and higher Card net charge-offs.

Back to the Corporate & Investment Bank, IB revenue of $1.7B up 34%; markets & investor services revenue of $6.5B up 14%. Provisions was a benefit of $96M vs. an expense of $459M a year earlier amid the energy crash.

Conference call at 8:30 ET

Previously: JPMorgan Chase beats by $0.13, beats on revenue (April 13)

JPM +0.8% premarket