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10-QPeriod: Q3 FY2018

JPMORGAN CHASE & CO Quarterly Report for Q3 Ended Sep 30, 2018

Filed October 31, 2018For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. reported a strong third quarter of 2018, with record net income of $8.4 billion and diluted EPS of $2.34 per share, driven by a 7% increase in total net revenue to $27.3 billion and a 35% decrease in the provision for credit losses. The effective tax rate also decreased due to the Tax Cuts and Jobs Act (TCJA), contributing to a 24% year-over-year increase in net income. The firm demonstrated robust profitability with a Return on Common Equity (ROE) of 14% and Return on Tangible Common Equity (ROTCE) of 17%. The company highlighted growth across its business segments, with Consumer & Community Banking (CCB) showing a significant 60% increase in net income, driven by higher deposit margins and loan growth. The Corporate & Investment Bank (CIB) saw a 2% increase in net revenue, with strong performance in Equity Markets and Treasury Services. Commercial Banking (CB) and Asset & Wealth Management (AWM) also reported increased net income and revenue. Capital ratios remained strong, with a Common Equity Tier 1 (CET1) capital ratio of 12.0% under the Basel III Fully Phased-In Standardized approach, exceeding regulatory minimums. The firm continued to grow its tangible book value per share, ending the quarter at $55.68. Overall, the report indicates a healthy financial performance with solid capital levels and growth across key business lines.

Financial Highlights

32 data points
Beta

Net Income

$8.38B

EPS (Diluted)

$2.34

Total Assets

$2.62T

Cash & Equivalents

$419.10B

Free Cash Flow

$13.19B

Financial Statements
Beta
Interest Expense$5.53B
Net Income$8.38B
EPS (Basic)$2.35
EPS (Diluted)$2.34
Shares Outstanding (Basic)3.38B
Shares Outstanding (Diluted)3.39B

Key Highlights

  • 1Net income reached a record $8.4 billion for the third quarter, a 24% increase year-over-year, with diluted EPS at $2.34.
  • 2Total net revenue grew by 7% to $27.3 billion, driven by a 9% increase in Net Interest Income and a 4% increase in Noninterest Revenue.
  • 3Provision for credit losses decreased by 35% to $948 million, primarily due to improvements in the consumer portfolio.
  • 4Return on Common Equity (ROE) was 14%, and Return on Tangible Common Equity (ROTCE) was 17%, reflecting strong profitability.
  • 5Consumer & Community Banking (CCB) net income increased by 60% to $4.1 billion, supported by higher deposit margins and loan growth.
  • 6Corporate & Investment Bank (CIB) net revenue increased by 2% to $8.8 billion, with Equity Markets revenue up 17%.
  • 7Common Equity Tier 1 (CET1) capital ratio remained strong at 12.0% (Standardized approach), well above regulatory requirements.

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