JPMorgan Chase & Co. (JPM) Announces 2Q:17 Financial Results


JPMorgan Chase & Co. (NYSE:JPM) announced its financial results for the second quarter of 2017.

Highlights:

  • Reported revenue of $25.5 billion; managed revenue of $26.4 billion.
  • Average core loans2 up 8% YoY and 2% QoQ.
  • Average core loans2 up 9%; average deposits of $640 billion, up 10%.
  • 28.4 million active mobile customers, up 14%.
  • Credit card sales volume up 15% and merchant processing volume up 12%.
  • Maintained #1 ranking for Global Investment Banking fees with 8.3% wallet share YTD.
  • Banking revenue up 17%; Markets revenue down 14%.
  • Record revenue and net income of $2.1 billion (up 15%) and $902 million (up 30%), respectively.
  • Average loan balances of $198 billion, up 12%.
  • Record net income of $624 million, up 20%; revenue of $3.2 billion, up 9%.
  • Average loan balances of $122 billion, up 9%.
  • Record assets under management (“AUM”) of $1.9 trillion, up 11%; 77% of mutual fund AUM ranked in the 1st or 2nd quartile over 5 years.

Jamie Dimon, Chairman and CEO, commented on the financial results:“We continued to post very solid results against a stable-toimproving global economic backdrop. The U.S. consumer remains healthy, evidenced in our strong underlying performance in Consumer & Community Banking. Loans and deposits continue to grow strongly, and card sales and merchant processing volumes were up double digits, reflecting our consistent investment in the business. In the Corporate & Investment Bank, we maintained our leadership in Banking, while Markets revenue was down amid lower volatility and client activity.”

Dimon added: “Commercial Banking delivered record results this quarter with broad strength across products and markets. And in Asset & Wealth Management, the performance also was excellent with record net income and AUM.”

Dimon concluded: “We are also pleased to announce increases to our capital return plans while continuing to invest in our businesses for long-term profitability – reflecting the financial strength of our company and the significant capital and liquidity improvements we have made over the past several years.”

Shares of JPMorgan are down nearly one percent to $92.12 in pre-market trading Friday. JPM has a 1-year high of $94.51 and a 1-year low of $63.38. The stock’s 50-day moving average is $87.87 and its 200-day moving average is $87.57.

On the ratings front, JPM stock has been the subject of a number of recent research reports. In a report issued on July 7, Jefferies analyst Ken Usdin reiterated a Buy rating on the stock, with a price target of $102, which implies an upside of 10% from current levels. On July 6, Goldman Sachs’ Richard Ramsden assigned a Hold rating to the stock and has a price target of $93.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ken Usdin and Richard Ramsden have a yearly average return of 19.8% and 3.6% respectively. Usdin has a success rate of 82% and is ranked #11 out of 4600 analysts, while Ramsden has a success rate of 65% and is ranked #1920.

Overall, 5 research analysts have assigned a Hold rating and 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $95.38 which is 2.4% above where the stock closed yesterday.