JPMorgan Chase & Co. Earnings Dip 9%, but Surpass Analyst Expectations

JPMorgan Chase (NYSE: JPM  ) announced this morning that earnings per share stood at $1.46 in the second quarter, down 9% from the $1.60 seen in the second quarter of last year. This surpassed the expectations of analysts, who had projected earnings per share would stand at $1.29, according to Yahoo! Finance.

In total, net income stood at $6 billion in the second quarter, down from the $6.5 billion seen in the second quarter of last year. Part of the reason behind this drop was a decline in mortgage banking revenue, which fell from $1.8 billion to $1.3 billion.

In addition, the Corporate and Investment Bank division at JPMorgan Chase saw its net income fall 31% year over year to $2 billion. This was principally driven by declining revenue from its principal transactions -- its trading of debt, equity, and commodity contracts as well as its private equity investments -- which fell 23% to $2.9 billion.

The bank did note it recognized legal expenses that reduced its net income by $500 million in the second quarter and its earnings per share by $0.13.

JPMorgan Chase did see sizable improvement from its Asset Management and Commercial Banking businesses, which saw their net income rise by 10% and 6%, respectively, to $1.2 billion, combined.

"Despite continued industrywide headwinds in Markets and Mortgage, the firm has continued to deliver strong underlying performance," said the CEO of JPMorgan Chase, Jamie Dimon, in the earnings announcement. "Consumer & Community Banking deposit growth and card sales volume both outpaced the industry, and we had record loan originations in Business Banking."

In total, JPMorgan Chase saw its return on assets stand at 0.99% and return on tangible common equity at 14%. While below its results during the second quarter of 2013, these were improvements relative to the first quarter of this year:

 

Q2 2013

Q1 2014

Q2 2014

Return on Assets

1.09%

0.89%

0.99%

Return on Tangible Common Equity

17%

13%

14%

"This quarter marked the 10-year anniversary of JPMorgan Chase and Bank One coming together -- the company overcame significant challenges and achieved extraordinary things during this time," Dimon said to conclude his remarks. "We continue our progress on adapting to the new global financial architecture and on our control agenda. My pride in the company is greater than ever."

JPMorgan + Apple? This device makes it possible.
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its destined to change everything from banking to health care. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3029206, ~/Articles/ArticleHandler.aspx, 10/24/2014 4:54:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement