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Warren Buffett's JPMorgan Boosts Dow's Gain on Friday

- By James Li

JPMorgan Chase & Co. (JPM), a major Warren Buffett (Trades, Portfolio) bank holding, reported record first-quarter revenue and net income on strong growth across key segments.


Net earnings of $2.65 per share outperformed the analyst estimate by approximately 30 cents, while revenue of $29.1 billion outperformed the analyst estimate by approximately $1.5 billion.

Bank reports strong growth in consumer banking and commercial banking

JPMorgan CEO Jamie Dimon said the bank reported "strong performance" across its major segments, which include consumer and community banking and commercial banking.

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Chief Financial Officer Marianne Lake said on the earnings call that record new money growth, which reflected growth across digital channels, contributed to 13% year-over-year growth in client investment assets. Total consumer and community banking revenues of $13.8 billion increased 9% year over year, driven by higher net interest income on increased deposit and card margins.

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Lake also mentioned commercial banking revenues increased 8% year over year, driven by strong net interest income growth and record gross investment banking revenue of $818 million. Higher deposit margins fueled net interest income growth while strong transactions propelled gross investment banking revenues.

Stock rises over 4%, boosting Dow's gains

Shares of JPMorgan traded near an intraday high of $111.20, up approximately 4.67% from Thursday's close on the strong revenue and earnings. The stock contributed to the Dow Jones Industrial Average's gain of over 150 points, led by entertainment company Walt Disney Co. (DIS).

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Buffett's Berkshire Hathaway Inc. (BRK-A)(BRK-B) owns 50,116,394 shares of the bank as of the latest portfolio date. Other gurus cheering on JPMorgan's earnings results include Dodge & Cox and PRIMECAP Management (Trades, Portfolio).

Disclosure: No positions.

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This article first appeared on GuruFocus.