Q1 2024 JPMorgan Chase & Co Earnings Call Transcript
Key Points
- JPMorgan Chase & Co (JPM) reported a net income of $13.4 billion and an EPS of $4.44, indicating strong profitability.
- The firm delivered an ROTCE of 21%, showcasing efficient use of shareholder equity.
- Firm-wide investment banking (IB) fees increased by 18% year-on-year, showing growth in underwriting fees and strong net inflows across Asset & Wealth Management (AWM).
- First Republic contributed positively with $1.7 billion of revenue, $806 million of expense, and $668 million of net income.
- Consumer & Community Banking (CCB) reported net income of $4.4 billion on revenue of $16.6 billion, up 1% year-on-year, indicating resilience in consumer financial health.
- The results included a $725 million increase to the special assessment due to FDIC's updated estimate of expected losses from the closures of Silicon Valley Bank and Signature Bank.
- Markets revenue was down $400 million or 5% year-on-year, reflecting a decrease in trading activity.
- Expenses of $22 billion were up $1.8 billion or 9% year-on-year, driven by higher compensation and the increased FDIC special assessment.
- Net charge-offs were up $116 million predominantly driven by Card, indicating a normalization in credit performance.
- The firm's outlook for adjusted expense is now about $91 billion, reflecting an increase due to the FDIC special assessment, which may impact profitability.
Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's First Quarter 2024 Earnings Call. This call is being recorded. (Operator Instructions) We will now go live to the presentation. Please stand by.
At this time, I would like to turn the call over to JPMorgan Chase's Chairman and CEO, Jamie Dimon; and Chief Financial Officer, Jeremy Barnum. Mr. Barnum, please go ahead.
Thank you very much, and good morning, everyone. The presentation is available on our website, and please refer to the disclaimer in the back.
Starting on Page 1. The firm reported net income of $13.4 billion, EPS of $4.44 on revenue of $42.5 billion and delivered an ROTCE of 21%. These results included a $725 million increase to the special assessment resulting from the FDIC's updated estimate of expected losses from the closures of Silicon Valley Bank and Signature Bank.
Touching on a couple of highlights. Firm-wide IB fees were up 18% year-on-year, reflecting particular strength in
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