JPMORGAN CHASE & CO Quarterly Report for Q2 Ended Jun 30, 2015

Summary

JPMorgan Chase & Co. reported a solid second quarter for 2015, with net income of $6.3 billion, or $1.54 per diluted share, representing a 5% increase year-over-year. This performance was driven by a 6% decrease in noninterest expense, largely due to business simplification and lower legal costs, and a 2% decrease in provision for credit losses. However, total net revenue saw a slight 4% decrease to $23.8 billion, primarily impacted by lower Mortgage Banking revenue and subdued CIB Markets revenue, although this was partially offset by stronger performance in Investment Banking fees and Asset Management. The firm's balance sheet remains robust, with total assets decreasing by 5% to $2.45 trillion, reflecting a strategic reduction in wholesale non-operating deposits. Capital ratios remain strong, with Common Equity Tier 1 (CET1) capital ratio at 11.2% under Basel III Advanced Transitional rules, demonstrating a well-capitalized position. The firm continued to support economic activity by providing $1.0 trillion in credit and capital raising for commercial and consumer clients in the first half of the year. Looking ahead, management anticipates core loan growth of approximately 10% in the second half of 2015.

Key Highlights

• 1Net income of $6.3 billion for Q2 2015, a 5% increase year-over-year.
• 2Diluted EPS of $1.54, up 5% year-over-year.
• 3Total net revenue decreased 4% to $23.8 billion, impacted by lower Mortgage Banking and CIB Markets revenue.
• 4Noninterest expense decreased 6% to $14.5 billion, benefiting from business simplification and lower legal costs.
• 5Provision for credit losses increased 35% to $935 million, driven by wholesale credit provisions, particularly in the Oil & Gas sector.
• 6Common Equity Tier 1 (CET1) capital ratio improved to 11.2% (Basel III Advanced Transitional).
• 7Core loans increased 12% year-over-year, indicating continued lending activity.

Frequently Asked Questions