10-QPeriod: Q1 FY2015

JPMORGAN CHASE & CO Quarterly Report for Q1 Ended Mar 31, 2015

Filed May 5, 2015For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. reported solid financial results for the first quarter of 2015, with net income increasing by 12% year-over-year to $5.9 billion, or $1.45 per diluted share. This growth was primarily driven by a 4% increase in total net revenue to $24.1 billion, supported by strong performance in investment banking fees and principal transactions, notably within the Corporate & Investment Bank (CIB) segment. The firm maintained a strong capital position, with its Common Equity Tier 1 (CET1) ratio at 10.7% under Basel III Advanced Transitional rules, reflecting its commitment to a "fortress balance sheet". Despite a 2% increase in noninterest expense, largely due to higher legal expenses which included $687 million in the current quarter, the firm demonstrated effective cost management with an overhead ratio of 62%. Credit quality metrics remained stable, with a slight decrease in the allowance for loan losses to retained loans and a reduction in nonperforming assets. The Consumer & Community Banking (CCB) segment also showed resilience, with net income up 12% driven by revenue growth and lower expenses. Management anticipates continued core loan growth of approximately 10% for the full year 2015.

Financial Highlights

28 data points
Beta

Net Income

$5.91B

EPS (Diluted)

$1.45

Total Assets

$2.58T

Free Cash Flow

$14.88B

Financial Statements
Beta
Interest Expense$1.89B
Net Income$5.91B
EPS (Basic)$1.46
EPS (Diluted)$1.45
Shares Outstanding (Basic)3.73B
Shares Outstanding (Diluted)3.76B

Key Highlights

  • 1Net income increased 12% to $5.9 billion ($1.45/share) compared to Q1 2014.
  • 2Total net revenue grew 4% to $24.1 billion, driven by strong investment banking and principal transaction performance.
  • 3Noninterest expense increased 2% to $14.9 billion, primarily due to higher legal expenses ($687 million).
  • 4Provision for credit losses rose 13% to $959 million, reflecting a lower reduction in consumer allowances.
  • 5Common Equity Tier 1 (CET1) capital ratio remained strong at 10.7% (Basel III Advanced Transitional).
  • 6Consumer & Community Banking segment net income increased 12% to $2.2 billion.
  • 7Corporate & Investment Bank segment net income increased 19% to $2.5 billion, driven by higher investment banking fees and markets revenue.

Frequently Asked Questions

JPMorgan Chase reported a net income of $5.9 billion, or $1.45 per diluted share, for the first quarter of 2015.

Total net revenue increased by 4% to $24.1 billion, primarily due to higher investment banking fees, principal transactions, and mortgage fees and related income. The Corporate & Investment Bank (CIB) segment showed particularly strong performance in investment banking fees and markets revenue.

JPMorgan Chase maintained a strong capital position. The Common Equity Tier 1 (CET1) capital ratio was 10.7% under Basel III Advanced Transitional rules as of March 31, 2015, and the Tier 1 capital ratio was 12.1%. The firm referred to its 'fortress balance sheet'.

The Consumer & Community Banking segment reported a net income of $2.2 billion, an increase of 12% compared to the prior year, driven by a 2% increase in total net revenue and a 4% decrease in total noninterest expense.