JP Morgan’s Q1 Earnings Beat Estimates (JPM)
JP Morgan Chase & Co. (NYSE: JPM), on Friday, reported better than expected first-quarter earnings, driven by strong revenue. The bank’s revenue rose as demand for new loans continued to rise in the first quarter. The bank also benefited from an improvement in capital market activity during the first quarter.
Speaking at a conference call, Douglas Braunstein, CFO of JP Morgan, said that the quarter showed a solid performance across most of JP Morgan’s businesses, including real strength in capital markets and significant improvement in mortgage banking.
For the first quarter of 2012, JP Morgan reported earnings of $1.31 per share, compared with $1.28 per share reported for the same period in the previous year. Analysts were expecting the New York City-based bank to report a profit of $1.18 per share.
Revenue for the quarter rose 6% on a year-over-year basis to $27.42 billion, compared with Street estimates of $24.68 billion.
Jamie Dimon, CEO of JP Morgan, said that corporations have cash and housing is getting very close to the bottom, while consumer debt is back where it was 20 years ago. Dimon said that he would not overreact to recent disappointing employment growth. He said that the economy looks OK but we all wish it were a little stronger.
Commenting on the situation in the euro zone, Dimon said that the European Central Bank’s (ECB) long-term refinancing operations (LTRO) did not provide a permanent fix to the region’s debt problem. He said that while the ECB has to do some things to deal with the euro zone debt crisis, the LTRO was not sufficient.
Despite posting better than expected earnings for the first quarter, JP Morgan shares fell sharply on Friday as the broad market tumbled. JP Morgan shares finished the day 3.64% lower at $43.21.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht. |