8-KEarnings & ResultsExhibits & Filings

JPMORGAN CHASE & CO 8-K Report, Financial Results (Apr 18, 2007)

Filed April 18, 2007For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. reported a robust first quarter for 2007, with net income soaring to $4.8 billion, or $1.34 per share, a significant increase from $3.1 billion, or $0.86 per share, in the same period of 2006. This strong performance was partly influenced by the adoption of SFAS 157 (Fair Value Measurements), which provided a $391 million (after-tax) or $0.11 per share benefit to earnings this quarter. Beyond the headline earnings, investors should note the company's commitment to shareholder returns. JPMorgan Chase announced a 12% increase in its quarterly common stock dividend, raising it by $0.04 per share, with the next dividend payable in July 2007. Additionally, the firm authorized a substantial $10 billion common stock repurchase program, signaling confidence in its financial position and a desire to enhance shareholder value.

Key Highlights

  • 1JPMorgan Chase reported first quarter 2007 net income of $4.8 billion, a substantial increase from $3.1 billion in Q1 2006.
  • 2Earnings per share (EPS) for Q1 2007 were $1.34, up significantly from $0.86 in Q1 2006.
  • 3Adoption of SFAS 157 ('Fair Value Measurements') contributed $391 million (after-tax) or $0.11 per share to Q1 2007 earnings.
  • 4The company announced a 12% increase in its quarterly common stock dividend, raising it by $0.04 per share.
  • 5A new common stock repurchase program of $10 billion was authorized.
  • 6The filing includes an earnings release (Exhibit 99.1) and a financial supplement (Exhibit 99.2) for the first quarter of 2007.

Frequently Asked Questions

The primary driver was strong operational performance leading to higher net income. However, the adoption of SFAS 157 ('Fair Value Measurements') also provided a notable benefit of $391 million (after-tax) or $0.11 per share to the quarter's earnings.

JPMorgan Chase is returning capital through two main initiatives: a 12% increase in its quarterly common stock dividend (a $0.04 per share increase) and the authorization of a new $10 billion common stock repurchase program.

Yes, the adoption of SFAS 157, which deals with 'Fair Value Measurements', had a positive impact on the first quarter 2007 earnings, contributing $0.11 per share after tax.

More detailed financial information is available in the attached exhibits: Exhibit 99.1 (Earnings Release) and Exhibit 99.2 (Earnings Release Financial Supplement).