JPMorgan posts 12% increase in profit to $5.91 billion in Q1

JPMorgan Chase & Co posted better-than-expected quarterly profit on Tuesday.

For the three months to the end of March the firm reported a 12% increase in profit to $5.91 billion (earnings of $1.45 per share). On average, analysts expected earnings of $1.40 per share, according to Thomson Reuters I/B/E/S.

Net revenue was $24.8 billion, up $967 million compared to the year before, mainly driven by strong performance in the Corporate & Investment Bank, both in Markets and Investment Banking.

Revenue from trading fixed income, currencies and commodities rose by 5 percent to $4.07 billion in the quarter.

“We have an outstanding franchise which is getting safer and stronger, and is gaining market share over time,” said chief executive Jamie Dimon.

“We continue to build the company for the long-term, we are investing in controls, infrastructure, systems, technology, new products and bankers.”

JP Morgan Chase

Jamie Dimon commented on the lines of business:

“Consumer & Community Banking saw healthy growth in deposits, investment assets and loans and continued to deepen relationships – winning four TNS Choice Awards in 2015, including #1 in consumer retail banking nationally for the third consecutive year. In Mortgage, we had higher originations and continued to add high-quality loans to our balance sheet while managing expenses.

“The Corporate & Investment Bank maintained its #1 ranking in Global IB fees with strong fees across products, and 100 bps of market share gains over the last year. The Markets business saw an increase in activity in both Fixed Income and Equity Markets.

“Commercial Banking generated healthy loan growth in both C&I and CRE and also delivered an impressive increase in gross investment banking revenue with Commercial Banking clients.

“Asset Management had $16 billion of net long-term inflows, generated strong investment performance and continued to grow loan and deposit balances.”

Legal troubles expected to be normalized by next year

The company reported an after-tax charge of $487 million for legal expenses and it set aside $959 million to cover bad loans ($109 million more than the year before).

The bank expects its legal troubles to be sorted out by 2016. The the US Justice Department is still carrying out an investigation into the bank’s involvement in the manipulation of the foreign exchange markets.

Reference: JPMorgan Chase Reports First-Quarter 2015 Net Income of $5.9 Billion, or $1.45 Per Share, On Revenue of $24.8 Billion 14% Return On Tangible Common Equity” – JPMorgan Chase