JP Morgan quarterly figures: Expectations exceeded, stock price rises

The JP Morgan quarterly figures have just been published. They are of immense importance as JP Morgan is the largest bank in the USA. Here are the key figures.

Revenues (sales) amounted to 33.0 billion Dollars (previous year quarter 29.57/expected 30.3). Earnings per share are $1.38 (prior year quarter 2.82/expected 1.04).

10.47 billion Dollars were set aside in the second quarter for credit losses and potential credit losses in total (approximately $9 billion expected).

The JP Morgan share is currently quoted at plus 2.5 percent in the pre official trading. Ohhh wonders, one might say – low expectations exceeded, stock price up!

Do you want to go deep into the figures of JP Morgan? Click here for the current presentation of the bank with interesting charts and data.

JP Morgan Quartalszahlen Daten

Here the whole headline statement of the most powerful banker of the USA Jamie Dimon:

“I want to thank our employees around the world for their exceptional work. Work was done under the most difficult of circumstances over the past several months. As one of the world’s largest financial institutions, our actions are critical to keep the global economy going. From processing $6 trillion in payments each day worldwide to keeping three-quarters of our nearly 5,000 branches open – and safe – to meet individuals’ financial needs. During these unprecedented times, JPMorgan Chase remains resilient. And remains steadfast in using all of our resources to support our colleagues, clients and communities across the globe.”

Uncertainty not deleted

Dimon added: “Despite some recent positive macroeconomic data and significant, decisive government action, we still face much uncertainty regarding the future path of the economy. However, we are prepared for all eventualities. Our fortress balance sheet allows us to remain a port in the storm. We ended the quarter with massive lossabsorbing capacity. Over $34 billion of credit reserves and total liquidity resources of $1.5 trillion. That is on top of $191 billion of CET1 capital, with significant earnings power that would allow us to absorb even more credit reserves if needed. This is why we can continue to serve all of our stakeholders. We do pay our dividend – unless the economic situation deteriorates materially and significantly.”

Dimon commented on the results: “We earned $4.7 billion of net income in the second quarter. Despite building $8.9 billion of credit reserves because we generated our highest quarterly revenue ever. That demonstrates the benefit of our diversified global business model. Record Markets revenue (up 79%) and Investment Banking fees (up 54%) in the Corporate & Investment Bank more than offset interest rate headwinds and reduced consumer activity. In Consumer & Community Banking, deposits and client investment assets continued to grow (up 20% and 9%, respectively) as we addressed our customers’ needs remotely as well as in our branches.

COVID-19 Crisis

Card sales volumes are down but have been consistently trending upward since April. We remained active in Home Lending on the strength of our digital platform. Auto originations picked up in the second half of the quarter driven by pent up demand in states that are re-opening. We maintained our #1 rank in Global IB fees. And we grew our year-to-date share to 9.8% with strength across the franchise, including in Commercial Banking. The CB also grew loans 13% to $234 billion and deposits were up 41% as we helped clients manage their liquidity needs. In Asset & Wealth Management, AUM grew 15%. That is driven by $124 billion of net inflows into liquidity and long-term products as we helped clients navigate market volatility.”

Dimon concluded: “We are fully committed to doing our part both in promoting the safety of our employees and customers and helping the economies of the world recover from the impact of the ongoing COVID-19 crisis, including helping to drive policies and programs for the benefit of all of society and create opportunity for those who have been left out of the economy for far too long.”

Jamie Dimon - heute JP Morgan-Quartalszahlen

Caricature of Jamie Dimon, the “USA banker”. The head of the most important and powerful bank in the USA. He made JP Morgan a sparkling source of money. Author: DonkeyHotey CC BY-SA 2.0

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