JP Morgan beats quarterly forecasts, to increase capital returns
Wall Street heavyweight JP Morgan posted better than expected top and bottom-line growth for its latest three-month stretch, despite widely-anticipated weakness in its Markets unit, and increases to its capital return plans.
Dow Jones I.A.
38,239.66
04:30 15/10/20
JP Morgan Chase & Co.
$193.49
10:59 26/04/24
During the first quarter its total net revenues were 5% ahead to $26.41bn, driving a 13% increase in net income to $7.03bn for earnings per share of $1.82.
Analysts on the Street were anticipating EPS of $1.58 and a top line figure of $24.96bn.
JP Morgan boss Jamie Dimon described the global economic backdrop as "stable-to-improving" while highlighting continued strong growth at its Consumer & Community Banking unit and record results in Commercial Banking.
Dimon also said he was pleased to announce increases to its capital return plans.
Meanwhile, Asset and Wealth Management clocked in with record net income and assets under management, he said.
Dimon attributed the lower revenues at its Markets unit to decreased levels of volatility in financial markets and client activity.
JP Morgan's return on common equity improved from 10% one year ago to 12%, while its return on tangible common equity rose from 13% to 14%.
As of 1222 BST, shares in JP Morgan were down by 0.21% to $92.80.