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

JPMorgan Chase saw its earnings decline thanks to lessening mortgage and trading revenue, but it beat what many analysts feared as a sizable decline.

Jul 15, 2014 at 10:02AM

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




Return on Tangible Common Equity




"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

Patrick Morris owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information