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Investing stocks, commodities, forex => 
US Stocks => Topic started by: kanelos on April 12, 2019, 08:00:31 AM
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J.P. Morgan Chase reported record first-quarter profit and revenue that exceeded analysts’ expectations as the bank benefited from higher interest rates.
The company said profit rose 5 percent to $9.18 billion, or $2.65 a share, compared with analysts’ average estimate of $2.35 a share. Revenue also rose 5 percent to $29.9 billion, exceeding estimates by about $1.5 billion as net interest income grew 8 percent, thanks to the “impact of higher rates,” J.P. Morgan said Friday in a release. The boost was evident in the bank’s huge retail lending business, where profit surged 19 percent to $3.96 billion.
Shares rose 2.5 percent in premarket trading.
“We had record revenue and net income, strong performance across each of our major businesses and a more constructive environment,” CEO Jamie Dimon said in a statement.
“Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong,” he added.
J.P. Morgan, the biggest U.S. bank by assets, is the first major lender to report earnings. Its results may allay fears about the sector after the Federal Reserve signaled it was pausing rate hikes for the remainder of the year. Combined with signs of a global economic slowdown, the central bank’s actions punished bank stocks because the inverted yield curve crimps the industry’s profit margins and signals a possible recession on the horizon.
But J.P. Morgan’s results showed that it still benefited from the Fed’s last move to hike its benchmark rate in December, the fourth time it raised rates last year.
The company, led by Dimon since 2005, has resumed its pattern of exceeding analysts’ profit expectations. In the fourth quarter, the bank under-delivered after beating expectations for 15 straight quarters on tough trading results.
The bank said in February that first-quarter trading revenue was headed for a “high-teens” percentage drop from a year earlier as both equities and fixed income desks struggled amid slower client activity.
Nonetheless, the bank continued making long-term investments in its business. J.P. Morgan said it’s expanding its branch network to cover nearly all of the U.S. population by 2022. It also announced the first cryptocurrency from a major U.S. bank, and pledged $350 million to boost the job prospects of people in under-served communities.
Here’s what Wall Street expected:
Earnings: $2.35 per share, a 0.7% decline from a year earlier, according to Refinitiv.
Revenue: $28.4 billion, a 0.3% decline from a year earlier.
Net Interest Margin: 2.57%, according to FactSet
Trading Revenue: Fixed income $3.64 billion, Equities $1.76 billion
https://www.cnbc.com/2019/04/12/jp-morgan-earnings-q1-2019.html
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