10-QPeriod: Q2 FY2024

JPMORGAN CHASE & CO Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 2, 2024For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. reported strong financial results for the second quarter of 2024, driven by a significant net gain from Visa shares and robust performance across its business segments. Total net revenue surged by 22% year-over-year to $50.2 billion, primarily fueled by a 41% increase in non-interest revenue, largely due to the $7.9 billion net gain from the Visa share exchange. Net income rose 25% to $18.1 billion, with diluted earnings per share reaching $6.12. The firm demonstrated solid profitability with a Return on Equity (ROE) of 23% and a Return on Tangible Common Equity (ROTCE) of 28%. Despite a 14% increase in non-interest expense, largely attributed to higher compensation and a $1 billion contribution to the JPMorgan Chase Foundation, pre-provision profit showed a healthy 29% increase. The provision for credit losses also increased modestly, reflecting continued credit normalization. Capital ratios remained strong, with CET1 capital ratio at 15.3%, indicating robust capital adequacy. The firm also announced an intention to increase its quarterly common stock dividend and authorized a new $30 billion common share repurchase program.

Financial Highlights

32 data points
Beta

Net Income

$18.15B

EPS (Diluted)

$6.12

Total Assets

$4.14T

Cash & Equivalents

$530.82B

Free Cash Flow

$38.47B

Financial Statements
Beta
Net Income$18.15B
EPS (Basic)$6.13
EPS (Diluted)$6.12
Shares Outstanding (Basic)2.89B
Shares Outstanding (Diluted)2.89B

Key Highlights

  • 1Total net revenue increased 22% year-over-year to $50.2 billion, driven by a $7.9 billion net gain from Visa shares.
  • 2Net income rose 25% to $18.1 billion, translating to diluted earnings per share of $6.12.
  • 3Return on Equity (ROE) was 23%, and Return on Tangible Common Equity (ROTCE) was 28%, demonstrating strong profitability.
  • 4Net interest income increased 4% to $22.7 billion, supported by balance sheet mix, higher rates, and Card Services revolving balances.
  • 5Non-interest revenue grew 41% to $27.5 billion, significantly boosted by the Visa share gain and higher investment banking and asset management fees.
  • 6Non-interest expense increased 14% to $23.7 billion, primarily due to higher compensation, employee growth, and a $1 billion contribution to the JPMorgan Chase Foundation.
  • 7Common equity Tier 1 (CET1) capital ratio remained strong at 15.3%, indicating robust capital health.

Frequently Asked Questions

The primary driver was a substantial $7.9 billion net gain recognized from the exchange of Visa Class B-1 common shares for Visa Class C common shares. This gain significantly boosted non-interest revenue and, consequently, net income and overall financial performance for the quarter.

The provision for credit losses increased by 5% to $3.1 billion, reflecting higher net charge-offs, primarily in Card Services due to seasoning of newer vintages and continued credit normalization. The allowance for loan losses to total retained loans was 1.81%, a slight increase from the prior year. Nonperforming assets also saw a modest increase.

Management expects net interest income, and net interest income excluding Markets, to be approximately $91 billion for the full year 2024, though this is market dependent.

JPMorgan Chase maintained strong capital ratios, with a CET1 capital ratio of 15.3%. The firm announced its intention to increase the quarterly common stock dividend to $1.25 per share and authorized a new $30 billion common share repurchase program, demonstrating a commitment to shareholder returns.