The Banking and Strategy Initiative

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Bank Earnings Season 2Q2015: JP Morgan details its loan growth, MSR blips briefly on radar


The bank continues to do well with acquisition in retail on the strength of mobile banking. Loan Books have seemingly gained enough sight of traction to come in the remaining quarters forward as it reached a 60% mark in Loan to Deposits

CET Tier I ratio has hit 11% with Balance sheet winding down $121 Bln in the quarter ( on year) . The bank raised 3.4 B in preferred stock. and a dividend of 44 cents per share and the preferred sontributed to the SLR of 6%

Cost Income ratio, a laggard for the bank is still a obsequiously high 59%. Consumer Banking ROE of 19% reflects only partly the new growth in Credit Card accounts (7%) and Merchant processing (12%)

Buybacks hit another $2.6 Bln in capital returned to shareholders with $1 B in buybacks and rest in dividends

NIIs are stable, Fee Income is still growing out of a rut from the last two years or so even as advisory includes over $556 Bln raised for clients

New MSR revenue added to Total revenues and EPS has recovered fully improving on a stable $1.45 at $1.54

Tangible RoCE is a good 14%

Consumer Bank has scored $2.5 Bln in Income on $11 B in Net Revenues and $6.2 Bln in Expenses, split evenly with $3.1 Bln expenses in Mortgages, Auto and Cards and the rest in Branch and Center Banking


Fixed Income was down 10% again in the quarter but strength is returning in Rates

Equity markets revenues increased in derivatives and drove a higher 27% increase in net revenues

Commercial Banking income grew to the extent it also recorded Investment Banking Income. Asset Management income largely stable were affected by a legal payout


This entry was posted on July 14, 2015 by in Uncategorized.


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