JP Morgan’s Q1 earnings trumps estimate

JPMorgan Chase (JPM), the largest U.S. bank by assets, reported results that blew past estimates.

Here are the key figures versus estimates, according to Bloomberg:

Adjusted earnings per share (EPS): $4.50 vs. $3.05 estimate

Revenue: $32.3 billion billion vs. $30.42 billion estimate

During the quarter, the bank earned $14.3 billion in net income, up $11.4 billion from the year prior, driven by credit reserve releases of $5.2 billion.

That compared to credit reserve builds of $6.8 billion in the prior year, and helped boost earnings by $1.28 increase in earnings per share.

CEO Jamie Dimon said its credit reserves of $26 billion are “appropriate and prudent, all things considered.”

Dimon noted that consumer spending has returned to “pre-pandemic levels,” up 14% from the first quarter of 2019.

He also added that loan demand “remained challenge” as card outstanding remain lower even with the recovery in spending.

However, he echoed his upbeat views on the U.S. economy that he recently outlined in his annual letter to JPMorgan shareholders.

Breaking the results down further, banking revenue jumped 70% to $4.5 billion. Investment banking revenue hit $2.9 billion, up a whopping 222% year over year and reflecting higher fees.

The bank’s markets revenue hit $9.1 billion, up 25%. Fixed Income revenue climbed 15% to $5.8 billion, while equity markets revenue hit $3.3 billion, up 47%.

Shares of JPMorgan were last trading down 1.68% near $151.39 in the pre-market.