JPMorgan Chase & Co. (JPM) Announces 1Q:17 Financial Results


JPMorgan Chase & Co. (NYSE:JPM) has released its first-quarter 2017 financial results.

Summary: 

  • The company reported revenue of $24.7 billion; managed revenue of $25.6 billion.
  • Average core loans up 9% YoY and 1% QoQ.
  • Average core loans up 11%; average deposits of $623 billion, up 11%.
  • 27.3 million active mobile customers, up 14%.
  • Credit card sales volume up 15% and Merchant processing volume up 11%.
  • Record net income and Investment Banking fees for a first quarter of $3.2 billion, up 64% and $1.8 billion, up 37%, respectively.
  • Maintained #1 ranking for Global Investment Banking fees with 8.5% wallet share in 1Q17.
  • Record revenue of $2.0 billion, up 12%; record net income of $799 million, up 61%.
  • Record average loan balances of $191 billion, up 12%.
  • Record average loan balances of $118 billion, up 7%; record average deposit balances of $159 billion, up 5%.
  • Record assets under management (“AUM”) of $1.8 trillion, up 10%; 77% of mutual fund AUM ranked in the 1st or 2nd quartile over 5 years

CEO Jamie Dimon commented, “We are off to a good start for the year with all of our businesses performing well and building on their momentum from last year. The consumer businesses continue to grow core loans at double digits, outperform the industry in deposit growth, and we once again had very strong card sales volume growth this quarter – reflecting our commitment to providing our customers the innovative products and services they want.”

Dimon added: “We demonstrated the strength of our Corporate & Investment Bank platform, growing revenue strongly in Banking and Markets and maintaining leadership positions. Commercial Banking continued its solid performance with record revenue and net income this quarter. Asset & Wealth Management had strong underlying performance driven by record balances in banking, as well as record AUM & client assets.”

“U.S. consumers and businesses are healthy overall and with pro-growth initiatives and improving collaboration between government and business, the U.S. economy can continue to improve. We will be there to do our part, strong and steadfast in good times and bad, and working every day to support our clients and our communities,” Dimon concluded.

Shares of J.P Morgan are slightly up to $85.85 in pre-market trading Thursday. JPM has a 1-year high of $93.98 and a 1-year low of $57.05. The stock’s 50-day moving average is $89.38 and its 200-day moving average is $81.85.

On the ratings front, JPM has been the subject of a number of recent research reports. In a report issued on April 10, BMO analyst James Fotheringham reiterated a Hold rating on JPM, with a price target of $79, which implies a downside of 7% from current levels. Separately, on April 4, RBC’s Gerard Cassidy reiterated a Buy rating on the stock and has a price target of $95.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, James Fotheringham and Gerard Cassidy have a yearly average return of 11.6% and 27.6% respectively. Fotheringham has a success rate of 75% and is ranked #236 out of 4556 analysts, while Cassidy has a success rate of 77% and is ranked #5.

Sentiment on the street is mostly bullish on JPM stock. Out of 11 analysts who cover the stock, 6 suggest a Buy rating, 4 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $92.43, which implies an upside of 8% from current levels.

 

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