JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $3.9 trillion in assets and $317 billion in stockholders’ equity as of September 30, 2023. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally.
JPMorgan Chase (JPM) reported Q2 earnings Friday of $6.12 per diluted share, up from $4.75 a year earlier. Analysts polled by Capital IQ expected $4.51. Net revenue for the quarter was $50.20 billion, compared with $41.31 billion a year earlier. Analysts surveyed by Capital IQ expected $45.66 billion.
JPMorgan Q2 Earnings, Net Revenue Rise Read Post »
Higher interest rates continue to pressure some of the country’s biggest banks, and their lending machines are showing signs of consumer weakness. JPMorgan Chase and Wells Fargo both reported a drop in quarterly profit Friday. Citigroup posted a rise in profit, driven in part by the bank’s cost-cutting measures, but set aside more provisions for potential losses in their credit-card business. JPMorgan’s second-quarter profit declined 9% year-over-year to $13.1 billion. That figure excludes an $8 billion gain the bank received on an exchange of its shares of Visa and other one-time items. The bank’s net interest income, a measure of the difference between what banks pay out on deposits and charge on loans, rose to $22.9 billion, up 5% versus a year earlier. JPMorgan Chief Executive Jamie Dimon repeated his view that interest rates could wind up staying higher than some economists have forecast. “Market valuations and credit spreads seem
Big Banks Continue to Feel Pressure From Higher Rates Read Post »
Major banks increase their net charge-offs, or the debt they’re owed but don’t expect to recover. JPMorgan Chase charge-offs rise $820 million in 2Q to $2.2 billion, as more credit cards were opened and credit conditions continued to normalize. Wells Fargo net charge-offs rise 71% in 2Q to $1.3 billion, with charge-offs from commercial real estate loans increasing, particularly in its office portfolio, though commercial and industrial loans were a drag too, with higher charge-offs recorded in its credit card portfolio. Citigroup’s cost of credit rose $1.5 billion to $2.3 billion on a 59% jump in credit losses from higher interest rates and persistent inflation prompting the bank to lift its provision for loan losses.
Big Banks Writing Off More Bad Debt Read Post »
JPMorgan Chase’s (JPM) stock underperformed the S&P 500 by 5% during Monday’s Investor Day after disappointing remarks on buybacks from Chief Executive Officer Jamie Dimon, Morgan Stanley said Tuesday in a report. The stock is expected to rebound on spending from a $17 billion “tech war chest” with net interest income topping expectations “again and again,” the report said. JPMorgan shares declined Monday after Dimon said that repurchasing shares at over 2x tangible book value per share “is a mistake” and the bank wouldn’t buy back a lot of stock with these prices, Morgan Stanley said “The market clearly interpreted this to mean no buybacks,” the report said. Morgan Stanley said reduced its Q3 buyback estimate to $3 billion from $8.4 billion and Q4 to $4 billion from $8.8 billion. The brokerage also lowered its 2024 earnings per share estimate $0.12 to $16.84 and the 2025 EPS estimate by $0.25
There were no big surprises at today’s Investor Day, but the event underscored JPM’s market leadership and the depth/breadth of its management. JPM raised its NII forecast by $1B to $91B in ’24, and interest rate trends do not appear to be a disruptor to underlying loan volume with rates higher for longer to a soft landing. We keep our $215 target on a forward P/E of 13.0x, above the five-year average at 12.3x. Higher valuation may be supported by the bank’s ability to capitalize on its lead market position, the size of its balance sheet, and its ability to innovate and drive future growth. Investor Day demonstrated how JPM is using technology, including AI and other applications, to drive product innovation, streamline work processes, and realize higher organic revenue outpacing expense growth. JPM was low key about a rebound in investment banking, which is a cornerstone of our Buy
CFRA Reiterates Buy Opinion On Shares Of Jpmorgan Chase & Co. Read Post »
By Andrew Bary JPMorgan Chase CEO Jamie Dimon’s frank talk on stock repurchases Monday is rare for a corporate leader but ought to be heeded by his fellow corporate chieftains. At the company’s investor day, Dimon said the company would limit its stock repurchases given the elevated price of the JPMorgan stock. “We’re not going to buy back a lot of stock at these prices,” Dimon told attendees at the investor day. JPMorgan stock has returned about 45% over the past year and recently hit a record high. “We’ve been very, very consistent,” Dimon said. “When the stock goes up, we’ll buy less and when it comes down, we’ll buy more,” he added. Dimon’s view is espoused publicly by few CEOs save for Berkshire Hathaway’s Warren Buffett. Companies regularly repurchase stock regardless of price. Why? CEOs may truly believe their shares are undervalued even at high prices or they are
JPMorgan Chase shares fell 4.5% on Monday, not the kind of reception it usually hopes to get on its annual investor day. One contributor: Chief Executive Jamie Dimon implied the shares had gotten so high he didnt want to buy back any more shares. Later Monday, the bank looked to clarify Dimons comments. A JPMorgan spokesman said that Dimon’s comments on buybacks referred to additional repurchases of stock beyond the pace at which the bank is already buying back stock. Not that the bank is stopping all repurchases. Indeed, JPMorgan’s chief financial officer said the bank is increasing how much it buys back from shareholders, totaling over $2 billion of repurchases every quarter.
JPMorgan: Dimon Didn’t Mean No Stock Buybacks — WSJ Read Post »
JPMorgan Chase (JPM) can likely recover soon from Friday’s 6.5% share-price decline, with the company’s strengths in consumer, commercial and institutional banking overcoming disappointment caused by missing consensus calls on a handful of Q1 internal metrics, Oppenheimer analysts wrote Monday. Given its Q1 results appeared to be a “solid beat” on both the top and bottom lines, the Oppenheimer analysts they could not really explain why JPMorgan fell Friday. They reiterated their outperform rating for the company’s stock but tweaked their price target for JPMorgan shares, lowering it to $217 from $219, largely because of changes “in the market multiple, as our 2025 estimates are nearly unchanged,” they wrote. The analysts said the primary risks for JPMorgan and its share price were credit quality and interest rates as well as potential legal and regulatory issues. The bank, like most of its peers, has significantly reduced its risk profile, although if
JPMorgan’s Post-Q1 Slump Likely Short-Lived, Oppenheimer Analysts Say Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our $215 target on a forward P/E of 13.0x, above the five-year historical average of 12.3x. Following a $0.31 earnings beat at $4.44 in Q1, we raise our 2024 EPS by $0.50 to $16.50 and 2025’s by $0.70 to $17.00. The Q1 revenue beat was 9% higher (to $41.9B), supporting our higher revenue forecast of $164B in 2024 and $166B in 2025. We think current rates and a healthy U.S. economy support higher loan volume and the impact on net interest income (NII), which JPM is guiding conservatively at $90B for 2024. In Q1, NII rose 11% Y/Y and total loans were +16% Y/Y, with deposit-related fees +2%. Consumer net revenue was +15%, with banking/wealth management +3%, home lending +65%, and card services/auto +8%. Commercial
CFRA Reiterates Buy Rating On Shares Of Jpmorgan Chase & Co. Read Post »
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our $215 target on a forward P/E of 13.4x, above the five-year historical average of 12.3x. Following a $0.31 earnings beat at $4.44 in Q1, we raise our 2024 EPS by $0.50 to $16.50 and 2025’s by $0.70 to $17.00. The Q1 revenue beat was 9% higher (to $41.9B), supporting our higher revenue forecast of $164B in 2024 and $166B in 2025. We think current rates and a healthy U.S. economy support higher loan volume and the impact on net interest income (NII), which JPM is guiding conservatively at $90B for 2024. In Q1, NII rose 11% Y/Y and total loans were +16% Y/Y, with deposit-related fees +2%. Consumer net revenue was +15%, with banking/wealth management +3%, home lending +65%, and card services/auto +8%. Commercial
CFRA Reiterates Buy Rating On Shares Of Jpmorgan Chase & Co. Read Post »
JPMorgan Chase’s (JPM) net interest income outlook this year probably was assessed as a “moderate disappointment” amid “solid” Q1 results on a decrease in loan losses, higher non-interest income and lower expenses, HSBC Global Research said Friday in a note. JPMorgan kept its 2024 net interest income outlook at $90 billion “despite the increase in market expectations for fewer rate cuts since the company last updated guidance,” HSBC said. “The absence of an increase in the NII guide could be viewed as disappointing by the market.” JPMorgan reported Q1 adjusted earnings Friday of $4.63 per share, up from $4.44 a year earlier. Analysts polled by Capital IQ expected $4.13. Revenue rose to $41.93 billion from $38.35 billion. Analysts expected $41.69 billion. “At first blush, the results reinforce our view that JPMorgan will continue posting best-in-class profitability,” HSBC said. “However, elevated expectations and a premium valuation cap upside potential.” The investment
JPMorgan Chase (NYSE:JPM) reported quarterly earnings of $4.44 per share which beat the analyst consensus estimate of $3.82 by 16.23 percent. This is a 8.29 percent increase over earnings of $4.10 per share from the same period last year. The company reported quarterly sales of $42.55 billion which beat the analyst consensus estimate of $38.53 billion by 10.43 percent. This is a 8.17 percent increase over sales of $39.34 billion the same period last year.