JPMorgan Chase & Co. (NYSE:JPM) has certainly impressed its investors with the new quarterly report and the stock has gained around 4% on the market today.
Gerard Cassidy, banking analyst at RBC Capital Markets, was discussing the forecasts this morning on CNBC, just before the quarterly results being published and he compared the numbers with those of Citigroup Inc (NYSE:C) and he said that the numbers from the fixed and equity trading would be key to the stock’s performance.
“I think what we are expecting is, our earnings estimates is about in line with consensus but you put your thumb on what happened yesterday with Citigroup, we are really focused on the Capital Markets numbers” Cassidy said.
He said that they forecast a little less than the regular estimate of the market as JPMorgan Chase & Co. (NYSE:JPM) has had an interesting quarter where their revenue seemed to have taken a hit. There were also questions about the scandals it was involved and Cassidy said that there won’t be much about that on the call.
The Net income was at $6 billion which is a decline as compared to $6.5 billion last year during the same quarter, however the revenue reported is $25.4 billion and it is way ahead of expected $23.9 billion by the market. These factors definitely helped the stock of JPMorgan Chase & Co. (NYSE:JPM).
The Earnings per share reported was $1.46 which is also less as compared to the same quarter last year. The areas that were hit badly were Corporate and investment banking as expected by Cassidy. The legal expenses hit the revenue byt about $500 million and impacted the EPS by $0.13.
The Commercial banking and Asset management business saw rise with a rise of 10% and 6% respectively in the net income in these sectors. So JPMorgan Chase & Co. (NYSE:JPM) The return pon assets was around 0.99% which is lesser than the same quarter in the last year but better than Q1 this year which was 0.89%.
The credit losses were $692 million this year as compared to $47 million in the last year. SO overall though the overall numbers are lesser as compared to the last year, the company surpassed the lowered market estimates in few segments and hence the stock has been up after the results announcement.