The Banking and Strategy Initiative

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Bank Earnings Season Q1 2014: JP Morgan off the blocks with $5.3 Bln score, ROE in double digits

The new at bats in the Bank wree off to a good start with the quarters results counting to wards teh recent upheaval at the top as Jamie Dimon continues to rule the bank and Mike Cavanagh moves on

Even as earnings per share whittled down in excess of 20 cents over last year, the bank scored $5.3 Bln in profits and stayed on a $23.9 Bln revenue quarter , just shy as always of the $25 Bln mark with Corporate Investment Banking Revenue up $2.6 Bln from last quarter but down $1.6 Bln on year and accounting for two in three of the total CIB revenue reported by the bank despite $1.44 Bln Investment Banking advisory income and a safe $3.76 Bln revenue from Fixed income underlining its continuing strength in the muni and Corporate bond markets

JPM

The revenue and other data compare favorably reading 1q 2013 on the right to 1q 2014 on the left most column

Securities Services and Equities trading income were stable at $1 and $1.25 bln

Mortgage business ROE whittled down to near 0 after a single quarter last year of appreciable improvement in income but Income in Cards and Auto remained on track with an RoE of 23% , outstanding balances of 100Bln in Cards and Auto originations flat at above $6 bln

Mortgage Production revenue was positive and servicing expense down but MSR risk management took the buffer to keep $270 mln in losses

All retail Banking (CCB ) was $10.46 Bln in Revenues and $1.9 bln in profits, average loans down below $400 bln and deposits continuing uo at $471Bln

Commercial Banking income was strable at $578 mln on $1.65 bln in revenues, asset management margiuns still 26% EOP loan balances inclyuding Trust business iincreasing 20% even as deposit balances increased both on quarter and on year

Corporate Business reported $340 mln in profits accounting for the surplus over $5 Bln and making the bank cross the zone into outperformance on $215 mln in PE profits

Core NIMs start moving up this year at 2.66% and Loan loss reserves are down 5 B to 15.8 B with Card LLR at under 3%

The bank increased its share in Loan syndications in advisory business this qyuarter as other banks drifted off after a minor hurrah in 2012 and 13

Markets will likely shrug off the initial blues as the results are likely to shock a little in comparison to Well Fargo and the slowdown prominent bu tthe performance still underlines the resilience of the Top Wall street banks and likely to keep them in play for equity investors

I will be travelling during the webcast that starts in under an hour

 

 

 

 

 

 

 

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This entry was posted on April 11, 2014 by in Amitonomics, Banking.

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