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JPMORGAN CHASE & CO 8-K Report, Regulation FD Disclosure (Apr 12, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed April 12, 2024
Period End
April 12, 2024
In the record · 2016–202610-K1110-Q328-K336

JPM filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 336 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’22Jul ’22
  2. Leadership change8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed April 12, 2024. Cited figures are marked; the original filing is the authoritative source.

JPMorgan Chase reported first-quarter 2024 net income of $13.4 billiona, or $4.44 per diluted share, with managed revenue of $42.5 billion and an expense of $22.8 billion, yielding a managed overhead ratio of 53%.

Results include a $725 millionb increase to the FDIC special assessment recorded in Corporate. Excluding that charge, net income would have been $14.0 billion, EPS $4.63, and ROTCE 22% (vs. 21% reported). Ex-First Republic, managed revenue grew modestly and the Firm's balance sheet remained highly capitalized, with a Standardized CET1 ratio of 15.0% and an Advanced CET1 ratio of 15.3%.

Capital return remained steady: the Firm paid a $1.15c per share common dividend ($3.3 billion) and made $2.0 billion of net share repurchases. Tangible book value per share rose to $88.43 from $86.08 in 4Q23, and book value per share reached $106.81. Liquidity metrics stayed strong, with a Firm LCR of 112% and HQLA plus unencumbered marketable securities of $1.5 trillion.

Credit costs were $1.9 billiond, with net charge-offs of $2.0 billion, led by continued normalization in Card Services (NCO rate of 3.32%). Management reaffirmed its FY2024 outlook: net interest income of about $90 billion (market dependent), adjusted expense of about $91 billion, and a Card Services NCO rate below 3.50%. Investors will likely focus on the sustainability of net interest income, card credit normalization, and the impact of the FDIC special assessment on near-term earnings.

02—Key points

Key Highlights

  1. Reported 1Q24 net income of $13.4 billion and EPS of $4.44; excluding a $725 million FDIC special assessment increase, net income was $14.0 billion and EPS $4.63.
  2. Managed revenue of $42.5 billion (up $2.8 billion YoY on a reported basis), with net interest income of $23.2 billion and noninterest revenue of $19.3 billion.
  3. Firmwide ROTCE of 21% reported (22% ex-FDIC special assessment); ROE of 17%.
  4. Standardized CET1 ratio of 15.0% and Advanced CET1 ratio of 15.3%, with CET1 capital of $258 billion and standardized RWA of $1.7 trillion.
  5. Capital distributions of $3.3 billion in dividends plus $2.0 billion of net buybacks; tangible book value per share increased to $88.43 from $86.08 in 4Q23.
  6. Credit costs of $1.9 billion, with net charge-offs of $2.0 billion, driven by Card Services normalization (NCO rate of 3.32%).
  7. FY2024 outlook reaffirmed: net interest income of ~$90 billion, adjusted expense of ~$91 billion, and Card Services NCO rate below 3.50%, all market dependent where noted.

03—Questions

Frequently Asked Questions

  1. How did the FDIC special assessment affect JPMorgan's first-quarter 2024 results?

    The Firm recorded a $725 million increase to the FDIC special assessment in Corporate, which reduced after-tax net income by about $550 million, or $0.19 per share. Reported net income was $13.4 billion and EPS $4.44; excluding the charge, net income would have been $14.0 billion and EPS $4.63.

  2. Is JPMorgan's capital position strong enough to support its dividend and buybacks?

    Yes. The Standardized CET1 ratio was 15.0% and the Advanced CET1 ratio 15.3%, well above typical regulatory requirements. The Firm paid a $1.15 per share dividend and made $2.0 billion of net repurchases while growing CET1 capital to $258 billion. The Firm SLR was 6.1%.

  3. What is driving credit costs higher, and what is the outlook?

    Credit costs were $1.9 billion, mainly reflecting net charge-offs of $2.0 billion. The increase is largely attributed to normalization in Card Services, where the NCO rate rose to 3.32% from 2.07% a year earlier. Management expects the FY2024 Card Services NCO rate to remain below 3.50%.

  4. What is the Firm's full-year 2024 guidance?

    Management expects FY2024 net interest income of about $90 billion (about $89 billion excluding Markets), adjusted expense of about $91 billion, and a Card Services NCO rate below 3.50%. Net interest income guidance is market dependent, and adjusted expense includes the 1Q24 FDIC special assessment increase.

  5. How did individual business segments perform?

    Consumer & Community Banking earned $4.8 billion (ROE 35%) on revenue of $17.7 billion. Corporate & Investment Bank earned $4.8 billion (ROE 18%) on revenue of $13.6 billion, with Markets revenue of $8.0 billion. Commercial Banking earned $1.9 billion, and Asset & Wealth Management earned $1.3 billion, with AUM of $3.6 trillion.

04—Continue

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