Post Earnings Coverage as JPMorgan Reported a Robust Q1 Earnings; Beat Expectations

Upcoming AWS Coverage on SunTrust Banks Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 18, 2017 / Active Wall St. announces its post-earnings coverage on JPMorgan Chase & Co. (NYSE: JPM). The Company reported its financial results for the first quarter fiscal 2017 (Q1 FY17) on April 13, 2017. The New York-based bank's quarterly net revenues registered a 6% y-o-y growth outperforming Wall Street forecasts. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of JPMorgan Chase's competitors within the Money Center Banks space, SunTrust Banks, Inc. (NYSE: STI), announced on March 10, 2017 that it plans to release its Q1 2017 results on Friday, April 21, 2017 at 8:00 a.m. ET. SunTrust management will host a conference call that morning. AWS will be initiating a research report on SunTrust Banks in the coming days.

Today, AWS is promoting its earnings coverage on JPM; touching on STI. Get our free coverage by signing up to: http://www.activewallst.com/register/

Earnings Reviewed

During the three months ended on March 31, 2017, JPMorgan reported total net revenues of $24.68 billion, which was above $23.24 billion recorded in Q1 FY16. Total net revenues for the reported quarter also beat market consensus estimates of $24.6 billion.

In Q1 FY17, JPMorgan's net interest income grew 6% y-o-y to $12.06 billion from $11.38 billion in the year ago same period. The growth in net interest income is primarily attributed to the growth in loans and positive impact of higher rates. Driven by Corporate & Investment Bank, noninterest revenues for Q1 FY17 was also up by 6% y-o-y to $12.61 billion from $11.86 billion in Q1 FY16.

The financial services firm's net income for Q1 FY17 came in at $6.45 billion, or $1.65 per diluted share, rising from $5.52 billion, or $1.35 per diluted share, in Q1 FY16. Moreover, net income numbers for Q1 FY17 outshined Wall Street consensus estimates of $1.51 per diluted share.

Performance Metrics

JPMorgan reported return on assets of 1.03% in Q1 FY17 versus 0.93% in the year ago comparable quarter. The return on common equity rose to 11% in Q1 FY17 from 9% reported in last year's same period. Additionally, the bank's return on tangible return on common equity for the reported quarter came in at 13%, compared to 12% in Q1 FY16.

As on March 31, 2017, the Company's Basel III common equity Tier 1 capital stood at $184.34 billion, or 12.5% compared to $177.53 billion, or 12.1% in the year ago same period. The Company's Basel III Tier 1 capital ratio was 14.2% at the end of Q1 FY17 compared to 13.8% at the close of Q1 FY16. Additionally, tangible book value per share stood at $52.04 as on March 31, 2017, up 6% from $48.96 per share as on March 31, 2016.

Segment Performance

In Q1 FY17, Consumer & Community Banking segment's revenues fell marginally to $10.97 billion from $11.12 billion in prior year's comparable quarter. Meanwhile, the segment's net income declined 20% y-o-y in Q1 FY17 to $1.99 billion from $2.49 billion in Q1 FY16.

Corporate & Investment Bank's revenues for Q1 FY17 came in at $9.54 billion, which was 17% above $8.14 billion reported in the year ago corresponding quarter. The segment's net income surged 64% in Q1 FY17 to $3.24 billion from $1.98 billion in Q1 FY16.

JPMorgan's Commercial Banking net revenues for Q1 FY17 stood at $2.02 billion, up 12% y-o-y, primarily driven by higher net interest income and investment banking revenues. The segment's net income rose 61% y-o-y in Q1 FY17 to $799 million in the reported quarter.

Driven by higher deposit spreads, Asset Management segment's net revenues grew to $3.09 billion in Q1 FY17 from $2.97 billion in Q1 FY16. The segment contributed $385 million to combined net income in Q1 FY17 compared to $587 million in the previous year's comparable period.

Meanwhile, the Company's Corporate segment reported net income of $35 million in Q1 FY17 versus net loss of $32 million in the last year's comparable period.

Dividend

In a separate press release on March 21, 2017, JPMorgan's Board of Directors raised the quarterly dividend from $0.48 per share to $0.50 per share The dividend is payable on April 30, 2017, to stockholders of record at the close of business on April 06, 2017. The Company also informed Wall Street that it had returned capital worth $4.6 billion to its shareholders in Q1 FY17, which included $2.8 billion of net share buyback and $0.50 per share in form of quarterly cash dividend.

Guidance

In its outlook for full year FY17, the Company expects net interest income to rise $4.5 billion y-o-y. The management anticipates adjusted expenses during FY17 to be approximately $58 billion and forecasts net charge offs during FY17 to be +/- $5 billion.

Furthermore, the Company foresees a $400 million sequential growth in net interest income during Q2 FY17.

Stock Performance

At the closing bell, on Monday, April 17, 2017, JPMorgan Chase's stock rose 1.73%, ending the trading session at $85.86. A total volume of 19.04 million shares were traded at the end of the day, which was higher than the 3-month average volume of 15.90 million shares. In the last six months and previous twelve months, shares of the Company have surged 28.18% and 42.47%, respectively. Moreover, the stock gained 0.63% since the start of the year. The Company's shares are trading at a PE ratio of 13.18 and have a dividend yield of 2.33%. At Monday's closing price, the stock's net capitalization stands at $306.69 billion.

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