10-QPeriod: Q1 FY2025

JPMORGAN CHASE & CO Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 1, 2025For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. (JPM) reported strong first quarter 2025 results, with net income increasing 9% year-over-year to $14.6 billion, or $5.07 per diluted share. Total net revenue grew 8% to $45.3 billion, driven by a significant 17% increase in noninterest revenue, largely fueled by a robust performance in the Commercial & Investment Bank (CIB) segment, which saw Markets revenue surge 21%. Net interest income saw a modest 1% increase, impacted by lower rates and deposit margin compression, though this was partially offset by growth in wholesale deposits and higher revolving balances in Card Services. The firm demonstrated solid profitability with a Return on Common Equity (ROE) of 18% and a Return on Tangible Common Equity (ROTCE) of 21%. Capital ratios remained strong, with Common Equity Tier 1 (CET1) capital at 15.4% under the Standardized approach. The company also returned capital to shareholders through dividends and share repurchases, with a declared quarterly dividend of $1.40 per share, an increase from the prior quarter. The provision for credit losses increased significantly to $3.3 billion from $1.9 billion in the prior year, reflecting a build-up in the allowance for credit losses, particularly in Card Services, due to the seasoning of recent loan vintages and a more cautious macroeconomic outlook.

Financial Highlights

32 data points
Beta

Net Income

$14.64B

EPS (Diluted)

$5.07

Total Assets

$4.36T

Cash & Equivalents

$425.90B

Free Cash Flow

-$251.84B

Financial Statements
Beta
Net Income$14.64B
EPS (Basic)$5.08
EPS (Diluted)$5.07
Shares Outstanding (Basic)2.82B
Shares Outstanding (Diluted)2.82B

Key Highlights

  • 1Net income rose 9% year-over-year to $14.6 billion ($5.07 per diluted share).
  • 2Total net revenue increased 8% to $45.3 billion, driven by strong noninterest revenue growth of 17%.
  • 3Commercial & Investment Bank (CIB) segment delivered robust results, with Markets revenue up 21% and Investment Banking fees up 12%.
  • 4Consumer & Community Banking (CCB) saw net income decrease by 8% to $4.4 billion, impacted by higher provision for credit losses.
  • 5Asset & Wealth Management (AWM) delivered strong growth, with net income up 23% to $1.6 billion and Assets Under Management (AUM) increasing 15% to $4.1 trillion.
  • 6Provision for credit losses increased significantly to $3.3 billion from $1.9 billion in Q1 2024, with net charge-offs rising to $2.3 billion.
  • 7Common Equity Tier 1 (CET1) capital ratio stood at a strong 15.4% (Standardized approach).

Frequently Asked Questions

Net income increased by 9% year-over-year to $14.6 billion. This growth was primarily driven by a substantial 17% increase in noninterest revenue, particularly strong performance in the Commercial & Investment Bank's Markets business and improved asset management fees in Asset & Wealth Management. These factors more than offset a significant increase in the provision for credit losses.

The provision for credit losses increased significantly to $3.3 billion from $1.9 billion in the prior year's first quarter. This increase reflects a rise in net charge-offs, particularly in Card Services, and an increase in the allowance for credit losses, driven by a more cautious macroeconomic outlook and the seasoning of recent loan vintages. The firm expects the net charge-off rate in Card Services to be approximately 3.60% for the full year 2025.

The Commercial & Investment Bank (CIB) reported a 12% increase in total net revenue, with Markets revenue up 21% and Investment Banking fees up 12%. Asset & Wealth Management (AWM) also showed strong growth, with net revenue up 12% and Assets Under Management (AUM) up 15% to $4.1 trillion. Consumer & Community Banking (CCB) saw a slight 4% increase in net revenue but a 8% decrease in net income, primarily due to the higher provision for credit losses.

JPMorgan Chase maintained a strong capital position. The Common Equity Tier 1 (CET1) capital ratio was 15.4% under the Standardized approach as of March 31, 2025, and the Tier 1 leverage ratio was 7.2%. The firm also returned capital to shareholders through dividends and share repurchases, with the Board approving a quarterly dividend of $1.40 per share, an increase from the previous quarter.