JP MORGAN CHASE(JPM) - 2025 Q1 - Quarterly Report

Financial Performance - JPMorgan Chase reported net income of $14.6 billion for Q1 2025, a 9% increase year-over-year, with diluted earnings per share of$ 5.07, up 14%[25]. - Total net revenue reached $45.3 billion, an 8% increase from the previous year, driven by a 17% rise in noninterest revenue to$ 22.0 billion and a 1% increase in net interest income to $23.3 billion[27]. - For the three months ended March 31, 2025, total net revenue was$ 45.31 billion, an increase of 8% compared to $41.93 billion in the same period of 2024[48]. - Net income for the three months ended March 31, 2025, was$ 14,643 million, up from $13,419 million in 2024[96]. - Net income for the three months ended March 31, 2025, was$ 4.4 billion, down 8% from $4.8 billion in 2024[121]. - Total net revenue increased by 4% to$ 18.3 billion, compared to $17.7 billion in the same period last year[121]. - Net income for the period was$ 6.94 billion, reflecting a 5% increase compared to $6.62 billion in the previous year[135]. - Total net revenue for the three months ended March 31, 2025, was$ 19.67 billion, a 12% increase from $17.58 billion in the prior year[135]. - Net revenue for the three months ended March 31, 2025, was$ 19.7 billion, an increase of 12% compared to $17.6 billion in 2024[138]. Credit Losses and Allowances - The provision for credit losses was$ 3.3 billion, significantly higher than the $1.9 billion in the prior year, with net charge-offs increasing to$ 2.3 billion[28]. - The total allowance for credit losses stood at $27.8 billion, with a coverage ratio of 1.94% compared to 1.77% in the previous year[28]. - The provision for credit losses was$ 3.30 billion, a 75% increase from $1.88 billion in the same quarter of 2024, with net charge-offs of$ 2.30 billion[60]. - Provision for credit losses was $2.6 billion, a 37% increase from$ 1.9 billion in the previous year[121]. - The allowance for loan losses increased by 4% to $(25,208) million, indicating a net addition driven by macroeconomic outlook changes[74]. - The provision for credit losses was$ 705 million, with net charge-offs of $177 million, compared to$ 69 million in the prior year[141]. - Total allowance for credit losses increased by 8% to $9.8 billion, up from$ 9.1 billion in 2024[146]. - The provision for credit losses was a net benefit of $10 million, compared to a net benefit of$ 57 million in the prior year[162]. Revenue Streams - Investment banking fees increased by 11% to $2.18 billion, while asset management fees rose by 13% to$ 4.70 billion[48]. - Noninterest revenue grew by 6% to $4.2 billion, supported by higher asset management fees and commissions[121]. - Noninterest revenue for the three months ended March 31, 2025, was$ 4.0 billion, up 14% from $3.5 billion in 2024[162]. - Revenue from Global Private Bank was$ 3.1 billion, up 10%, driven by higher management fees and brokerage fees[162]. - Noninterest revenue excluding Markets increased by 20% to $13.8 billion, compared to$ 11.5 billion in 2024[100]. - Noninterest revenue reached $653 million, a significant increase from a loss of$ 275 million in the prior year, primarily due to a $588 million First Republic-related gain[181][183]. Assets and Liabilities - Total assets increased by 9% to$ 4,357,856 million as of March 31, 2025, compared to $4,002,814 million at December 31, 2024[70]. - Total assets rose by 1% to$ 636.1 billion, while total loans remained stable at $570.2 billion[126]. - Total assets increased by 15% to$ 2,174.1 billion from $1,898.3 billion year-over-year[144]. - Total assets increased by 7% to$ 258.4 billion compared to $240.6 billion in the previous year[166]. - Client deposits and other third-party liabilities averaged$ 1.0 trillion, an increase of 11% from $931.6 billion in 2024[155]. - The average interest-earning assets were$ 3.7 trillion, an increase of $223 billion, with a yield of 5.19%, down 36 basis points[57]. Equity and Capital Ratios - The Firm achieved a return on common equity (ROE) of 18% and a return on tangible common equity (ROTCE) of 21%[25]. - Stockholders' equity rose by 2% to$ 351,420 million, reflecting net income and lower unrealized losses[82]. - Tangible common equity increased to $278.9 billion, up from$ 272.2 billion in the previous quarter[102]. - The CET1 capital ratio was 15.4% as of March 31, 2025, compared to 15.7% at the end of 2024, while the Tier 1 capital ratio was 16.5%[203]. - Total capital increased to $330.5 billion as of March 31, 2025, from$ 325.6 billion at the end of 2024[203]. - The firm reported a Tier 1 leverage ratio of 7.2% for the three months ended March 31, 2025, consistent with the previous quarter[205]. Customer Metrics - Active digital customers increased by 6% to 72.48 million, and active mobile customers grew by 8% to 59.04 million[131]. - The number of client advisors increased by 6% to 9,641 from 9,107[173]. Market Performance - The company ranked 1 for Global Investment Banking fees according to Dealogic, with total investment banking fees increasing by 12% to $2.2 billion[143]. - Equity Markets revenue surged 48% to$ 3.8 billion, driven by strong performance in Equity Derivatives[143]. - Total international net revenue increased by 10% to $7.7 billion, with notable growth in the Asia-Pacific region at 22%[157]. - Total international net revenue grew by 11% to$ 1.8 billion, compared to $1.6 billion last year[175]. Operational Expenses - Compensation expense increased by 7% to$ 14.09 billion, driven by higher revenue-related compensation and growth in employee numbers[64]. - Total noninterest expense increased by 6% to $9.9 billion, reflecting higher compensation and operational costs[121]. - Noninterest expense rose by 13% to$ 9.8 billion, primarily due to higher compensation and legal expenses[140]. - Noninterest expense decreased by 86% to $185 million, largely attributed to a net benefit of$ 19 million in the provision for credit losses, compared to a provision of $27 million in the previous year[181][186].