Early Access

10-QPeriod: Q2 FY2020

JPMORGAN CHASE & CO Quarterly Report for Q2 Ended Jun 30, 2020

Filed August 3, 2020For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. reported a net income of $4.7 billion, or $1.38 per diluted share, for the second quarter of 2020, a significant decrease of 51% compared to the same period last year. This decline was primarily driven by a substantial increase in the provision for credit losses, which rose to $10.5 billion from $1.1 billion in Q2 2019, reflecting the economic uncertainty and deterioration due to the COVID-19 pandemic. Total net revenue increased by 15% year-over-year to $33.0 billion, boosted by strong performance in the Corporate & Investment Bank (CIB) segment, particularly in Markets, which saw revenue jump 79%. However, this revenue growth was largely offset by the elevated credit loss provisions and a modest increase in noninterest expense. The firm maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 12.4%, and continued to return capital to shareholders through dividends, though share repurchases were suspended per regulatory guidance.

Financial Highlights

32 data points
Beta

Net Income

$4.69B

EPS (Diluted)

$1.38

Total Assets

$3.21T

Cash & Equivalents

$493.73B

Free Cash Flow

$82.92B

Financial Statements
Beta
Interest Expense$2.26B
Net Income$4.69B
EPS (Basic)$1.39
EPS (Diluted)$1.38
Shares Outstanding (Basic)3.08B
Shares Outstanding (Diluted)3.08B

Key Highlights

  • 1Net income decreased by 51% to $4.7 billion, primarily due to a significant increase in the provision for credit losses ($10.5 billion in Q2 2020 vs. $1.1 billion in Q2 2019).
  • 2Total net revenue increased by 15% to $33.0 billion, driven by strong CIB Markets revenue (+79%) and Investment Banking fees (+54%).
  • 3Provision for credit losses surged to $10.5 billion, reflecting the economic impact of the COVID-19 pandemic, with additions to both wholesale ($4.6 billion) and consumer ($4.4 billion) allowances.
  • 4Total assets grew by 20% to $3.2 trillion, largely driven by a 24% increase in deposits to $1.9 trillion as customers sought liquidity.
  • 5The CET1 capital ratio remained strong at 12.4%, demonstrating a robust capital position despite economic headwinds.
  • 6The Firm maintained its quarterly common stock dividend of $0.90 per share, signaling confidence in its financial stability.
  • 7Despite strong revenue growth in CIB, the Consumer & Community Banking (CCB) segment reported a net loss of $176 million due to elevated credit loss provisions.

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