Investment Rating - The report assigns a positive outlook on J.P. Morgan (JPM.US) with a strong performance in revenue and profit, indicating an outperform rating relative to market benchmarks [5]. Core Insights - J.P. Morgan's Q2 2024 revenue grew by 21.5% year-over-year, significantly exceeding Bloomberg's consensus forecast of 8.9%. Net profit attributable to common stockholders increased by 26.5% year-over-year, also surpassing the forecast of -0.4% [2][5]. - The bank's net interest margin (NIM) decreased by 9 basis points quarter-over-quarter to 2.62%, which was lower than the expected 2.65% [2][5]. - The Common Equity Tier 1 (CET1) capital ratio improved by 1.5 percentage points year-over-year to 15.3%, exceeding the forecast of 13.8% [2][5]. Summary by Sections Revenue and Profit Performance - Total revenue for Q2 2024 was $50.2 billion, with a year-over-year increase of 21.5%, outperforming the consensus estimate of $45.0 billion [4]. - Net interest income rose by 4.4% year-over-year to $22.7 billion, slightly below the expected 4.7% growth [4]. - Non-interest income surged by 40.6% year-over-year to $27.5 billion, significantly higher than the forecast of 24.1% [4]. Business Segment Performance - Consumer & Community Banking revenue grew by 2.7% year-over-year, below the expected 3.0% [2]. - Commercial & Investment Banking revenue saw a remarkable increase of 172.2% year-over-year, driven by a low base effect, outperforming the forecast of 5.4% [2]. - Asset & Wealth Management revenue increased by 6.3% year-over-year, exceeding the expected 4.6% [2]. Asset Quality and Capital Ratios - Total provisions for credit losses amounted to $3.052 billion, which was higher than the expected $2.810 billion [4]. - Non-performing loans increased to $7.791 billion, with a non-performing loan ratio of 0.59%, slightly above the expected 0.58% [4]. - Return on Assets (ROA) improved to 1.79%, exceeding the forecast of 1.51% [4]. - Return on Equity (ROE) rose to 23.00%, surpassing the expected 20.0% [4].

Core Insights - JPMorgan aims to capture 15% of the U.S. consumer deposits, currently holding an 11.3% share as of June 2023, with strategies focused on market share expansion [1] - As of March 31, 2024, JPMorgan's U.S. deposits totaled $1.97 trillion, with total deposits (including non-U.S.) at $2.43 trillion, slightly growing year-over-year [1] - The acquisition of First Republic in May 2023 contributed $92 billion to JPMorgan's deposit growth [2] Group 1: Growth Strategy - JPMorgan is investing in infrastructure and data modernization, leveraging AI and payment strategies to maintain a competitive edge over the next 5 to 10 years [2] - The company plans to expand its branch network by opening over 500 new branches by 2027 and renovating approximately 1,700 existing locations, aiming to solidify its position as the largest branch network in the U.S. [2] - JPMorgan is also engaged in opportunistic buyouts, increasing its stake in Brazil's C6 Bank and forming strategic alliances with fintech firms [3] Group 2: Market Position - JPMorgan's shares have increased by 40.9% over the past year, indicating strong market performance [3] - As of March 31, 2024, Bank of America held $1.95 trillion in total deposits, positioning JPMorgan as a close competitor in the banking sector [1]

Economic Outlook - JPMorgan Chase CEO Jamie Dimon warned that inflation and interest rates may remain elevated for longer than anticipated due to various inflationary pressures, including large fiscal deficits and global geopolitical tensions [1] - The consumer price index showed a 0.1% decrease month-over-month and a 3% increase year-over-year, marking the slowest annual rate in three years [2] - Federal Reserve Chair Jerome Powell indicated that rate cuts will depend on economic readiness, despite the upcoming presidential election [2] JPMorgan Chase Performance - JPMorgan reported adjusted earnings per share of $4.26, exceeding analysts' expectations of $4.19, with revenue increasing by 20% to $50.99 billion, surpassing expectations of $49.87 billion [3] - The bank generated $2.3 billion in investment banking fees, contributing to its strong quarterly results [3] - Despite positive results, Dimon expressed concerns about socioeconomic risks and the complex geopolitical situation [3] Wells Fargo Performance - Wells Fargo reported adjusted earnings per share of $1.33, above expectations of $1.29, with revenue of $20.69 billion, exceeding analysts' expectations of $20.29 billion [4] - The bank experienced growth in fee-based revenue, which offset a decline in net interest income [4] - Shares of Wells Fargo fell nearly 7% in early trading despite the positive earnings report [4] Citigroup Performance - Citigroup's adjusted earnings per share were $1.52, surpassing expectations of $1.39, with revenue of $20.14 billion, exceeding expectations of $20.07 billion [5] - The bank's equities trading revenue increased by 37% to $1.5 billion, and investment banking revenue surged by 60% to $853 million [5] - Citigroup's shares fell 2% in early trading, although they are up 20% year-to-date [6]

Financial Data and Key Metrics Changes - The firm reported net income of $18.1 billion, EPS of $6.12, and revenue of $51 billion, with an ROTCE of 28%. Excluding significant items, net income was $13.1 billion, EPS was $4.40, and ROTCE was 20% [3][5] - Revenue increased by $8.6 billion, or 20% year-on-year. Excluding the Visa gain and prior year’s First Republic bargain purchase gain, revenue was up $3.4 billion, or 9% [5][15] - Expenses were $23.7 billion, up $2.9 billion, or 14% year-on-year. Excluding the foundation contribution, expenses were up 9% primarily due to compensation and employee growth [5][6] Business Line Data and Key Metrics Changes - In the Consumer and Community Banking (CCB) segment, net income was $4.2 billion on revenue of $17.7 billion, up 3% year-on-year. Average deposits were down 7% year-on-year [8][9] - The Commercial and Investment Bank (CIB) reported net income of $5.9 billion on revenue of $17.9 billion, with investment banking fees up 50% year-on-year [10][11] - Asset and Wealth Management (AWM) reported net income of $1.3 billion with revenue of $5.3 billion, up 6% year-on-year, driven by higher management fees and strong net inflows [14] Market Data and Key Metrics Changes - Payments revenue was $4.5 billion, down 4% year-on-year, while total market revenue was $7.8 billion, up 10% year-on-year [12][13] - Average loans in banking and payments were up 2% year-on-year, while average client deposits were also up 2% year-on-year [13] Company Strategy and Development Direction - The firm intends to increase the quarterly common stock dividend from $1.15 to $1.25 per share in Q3 2024, reflecting strong performance [7][8] - The company remains focused on executing with discipline and maintaining a reasonable CET1 ratio while managing capital returns [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the investment banking pipeline despite ongoing headwinds, noting that refinancing activity has contributed to strong performance [11][35] - The firm anticipates continued normalization of net interest income (NII) due to higher deposit costs and economic conditions, with expectations for flat to slightly down deposit balances [24][25] Other Important Information - The firm completed the Comprehensive Capital Analysis and Review (CCAR) with a preliminary Stress Capital Buffer (SCB) of 3.3%, which may increase [7][29] - Credit costs were $3.1 billion, reflecting net charge-offs of $2.2 billion, primarily driven by card services [6][10] Q&A Session Summary Question: Update on capital and ROTCE - Management indicated that potential revisions to capital regulations are unlikely to support a higher normalized ROTCE than the current 17% target [17][18] Question: NII normalization potential - Management acknowledged some moderation in deposit pressures but emphasized that it is too early to declare an end to the over-earning narrative [23][24] Question: Stress capital buffer dialogue with the Fed - Management refrained from commenting on specific discussions with the Fed but noted that the SCB is subject to review and may change [28][29] Question: Buyback strategy and volume - Management clarified that buyback volumes are determined by current conditions and capital generation, with a focus on maintaining a sustainable dividend [66][70] Question: Investment banking environment - Management reported elevated dialogue in investment banking but cautioned about the risks of refinancing dominating the market [34][35] Question: Consumer credit trends - Management noted that charge-offs and delinquencies are normalizing, with subtle signs of weakness in lower-income segments [39][40]

♪♪♪ Good morning, ladies and gentlemen. Welcome to J.P. Morgan Chase's second quarter 2024 earnings call. This call is being recorded. Your line will be muted for the duration of the call. We will now go live to the presentation. The presentation is available on JPMorgan Chase's website, and please refer to the disclaimer in the back concerning forward-looking statements. Please stand by. At this time, I would like to turn the call over to JPMorgan Chase's Chief Financial Officer, Jeremy Barnum. Mr. Barnum, ...

High interest rates, the resurgence of the investment banking (IB) business and solid markets revenues drove JPMorgan’s (JPM) second-quarter 2024 adjusted earnings to $4.40 per share. The bottom line handily surpassed the Zacks Consensus Estimate of $4.19.The results excluded a $2.04 per share net gain related to Visa shares, an 18 cents per share donation of Visa shares to pre-fund contributions to the company’s Foundation and 14 cents per share net investment securities losses. After including these one-t ...

JPMorgan’s latest results, released Friday (July 12), showed that consumers continued to use their cards in full force, for both debit and credit payments.And though there are pockets of weakness in spending from lower income cohorts, according to management, spending trends are still strong — and there remain opportunities to grow presence in the card market.The second-quarter results and supplementals from the company indicated that credit card loans were up 13% year on year to $216 billion, up 5% from th ...

Key TakeawaysJPMorgan Chase reported second-quarter results that surpassed analysts' expectations.The banking giant reported revenue on a managed basis of $50.99 billion, above analysts' estimates as investment banking revenue surged on higher fees.The bank's profit rose 25% from the same time last year to $18.15 billion, beating projections, largely thanks to a $7.9 billion gain from an exchange of the company's Visa shares. JPMorgan Chase (JPM) reported second-quarter results that surpassed analysts' expe ...

JPMorgan Chase & Co. (JPM) reported $50.2 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 21.5%. EPS of $4.40 for the same period compares to $4.37 a year ago.The reported revenue represents a surprise of +11.45% over the Zacks Consensus Estimate of $45.04 billion. With the consensus EPS estimate being $4.19, the EPS surprise was +5.01%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to de ...

JPMorgan Chase & Co. Today | --- | --- | |-----------------------|-------| | | | | | | | | | | JPM | | | JPMorgan Chase & Co. | | | $202.63 | | | -4.82 (-2.32%) | | | 52-Week Range $135.19 | | | | | | ▼ | | | $210.38 | | | Dividend Yield 2.27% | | | P/E Ratio 12.24 | | | Price Target $198.61 | | Add to Watchlist JPMorgan Chase & Co. NYSE: JPM shows a Rising Wedge Pattern. Like all technical patterns, it is never 100% correct but often signals a bearish reversal in the underlying market. A rising wedge occur ...