JPMORGAN CHASE & CO Quarterly Report for Q1 Ended Mar 31, 2024

Summary

JPMorgan Chase & Co. reported a strong first quarter of 2024, with net income reaching $13.4 billion, an increase of 6% year-over-year, driven by a 9% rise in total net revenue to $41.9 billion. This revenue growth was fueled by an 11% increase in net interest income, benefiting from higher rates and the inclusion of First Republic Bank, alongside a 7% increase in noninterest revenue driven by higher asset management and investment banking fees. The Firm's return on equity (ROE) was 17%, and return on tangible common equity (ROTCE) was 21%, demonstrating solid profitability. Capital ratios remain robust, with the Common Equity Tier 1 (CET1) capital ratio at 15.0%, well above regulatory requirements. While noninterest expense increased by 13% to $22.8 billion, largely due to compensation, the First Republic integration, and a $725 million FDIC special assessment, the overall financial performance indicates resilience and continued growth. The provision for credit losses increased year-over-year, primarily reflecting higher net charge-offs in Card Services, though overall credit quality remains sound, with allowance for loan losses to total retained loans at 1.77%.

Key Highlights

• 1Net income increased 6% to $13.4 billion.
• 2Total net revenue rose 9% to $41.9 billion, driven by an 11% increase in net interest income and a 7% increase in noninterest revenue.
• 3Return on common equity (ROE) was 17%, and return on tangible common equity (ROTCE) was 21%.
• 4Noninterest expense increased 13% to $22.8 billion, impacted by compensation, First Republic integration, and a $725 million FDIC special assessment.
• 5Provision for credit losses increased by 17% to $1.9 billion, driven by higher net charge-offs in Card Services.
• 6Common Equity Tier 1 (CET1) capital ratio remained strong at 15.0%.
• 7Tangible book value per share (TBVPS) increased 15% to $88.43.

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