JPMorgan Chase reports first quarter 2016 net income of $5.5 billion

April 13, 2016
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JPMorgan Chase reports first quarter 2016 net income of $5.5 billion

Firmwide Balance Sheet

Average core loans up 17% YoY and 3% QoQ
Loans-to-deposits ratio of 64%

Consumer and Communiy Banking (CCB)

1Q16 ROE 19%
2015 ROE 18%

Average core loans up 25%; record growth in average deposits of $50 billion, up 10%
Nearly 24 million active mobile customers, up 19%
Credit card sales volume up 8% and Merchant processing volume up 12%

Corporate and Investment Bank (CIB)
1Q16 ROE 11%
2015 ROE 12%

Maintained #1 ranking for Global Investment Banking fees with 8.2% wallet share for 1Q16
#1 wallet share in North America, EMEA and LATAM for 1Q16

Commercial Banking (CB)
1Q16 ROE 11%
2015 ROE 15%

Average loan balances up 13%
13th consecutive quarter of single-digit NCO rate or net recoveries

Asset Management (AM)
1Q16 ROE 25%
2015 ROE 21%

Average loan balances up 7%
80% of mutual fund AUM ranked in the 1st or 2nd quartiles over 5 years

SIGNIFICANT ITEMS

First-quarter results included $479 million after-tax impact from wholesale credit costs ($0.13 decrease in earnings per share)

FORTRESS PRINCIPLES

Tangible book value per share of $48.96, up 8%
Basel III common equity Tier 1 capital1 of $176 billion; ratio of 11.7%
Firm SLR1 of 6.6% and Bank SLR of 6.7%
Compliant with U.S. LCR – HQLA of $505 billion

OPERATING LEVERAGE

1Q16 adjusted expense of $13.9 billion; adjusted overhead ratio of 58%

CAPITAL RETURN

$3.0 billion returned to shareholders in the first quarter
$1.3 billion of net repurchases and common dividend of $0.44 per share

SUPPORTED CONSUMERS, BUSINESSES & COMMUNITIES

$496 billion of credit and capital raised YTD
$59 billion of credit for consumers
$6 billion of credit for U.S. small businesses
$160 billion of credit for corporations
$251 billion of capital raised for corporate clients and non-U.S. government entities
$20 billion of credit and capital raised for nonprofit and U.S. government
entities, including states, municipalities, hospitals and universities

Jamie Dimon, Chairman and CEO, commented on the financial results: “We delivered solid results this quarter with strong underlying drivers. The consumer businesses continue to grow loans and deposits impressively, attracting deposits faster than the industry. The U.S. consumer remains healthy and consumer credit trends are favorable.”

Dimon added: “While challenging markets impacted the industry, we maintained our leadership positions and market share in the Corporate & Investment Bank and Asset Management, reflecting the strength of our platform. Even in a challenging environment, clients continue to turn to us in the global markets and we saw positive net long-term asset flows in Asset Management.”

Dimon concluded: “We are one of the most trusted financial institutions in the world, delivering consistently for our clients, communities and shareholders. We plan to increase capital return in the first half of 2016 as the board approved an incremental $1.9 billion in share buybacks. As we build for the future, we are continuously innovating and investing to succeed. We are strengthening the Firm to withstand any environment and to maintain scale and profitability through the cycle."

Re-disseminated by The Asian Banker