JPMorgan Earnings Soar to $6.1 Billion in First Quarter

jpmorgan chase earnings
Mark Lennihan/AP

(Updated 7:52 a.m. EDT)

NEW YORK -- JPMorgan Chase, the country's biggest bank by assets, says its first-quarter earnings soared, even as revenue fell slightly.

The bank made $6.1 billion in the first quarter, after stripping out payments to preferred shareholders. That was up 34 percent from the same period a year ago, when it made $4.6 billion.

On a per-share basis, that amounted to $1.59. That blew away the estimates of analysts polled by FactSet, who had been expecting $1.39.

Revenue and profit fell in its retail banking business, but increased in investment banking. JPMorgan funded $53 billion in mortgages, a jump of 37 percent from a year ago. But profits in the mortgage unit fell 31 percent, and the bank said profit margins were lower.

Revenue was $25.8 billion, after stripping out the effect of an accounting charge. That beat analysts' estimates of $25.7 billion, though it was down 3 percent from the same period a year ago.

In many respects, it's been a difficult year for the New York-based bank. A surprise trading loss, which the bank acknowledged about a year ago, has been haunting it, resulting in management shake-ups, increased scrutiny from regulators, scoldings from Congress and a big pay cut for CEO Jamie Dimon.

In a statement, Dimon said the bank has "work to do" to strengthen internal controls and make sure it is in compliance with regulations. He called it the new "top priority" for the bank.

"There is no room for compromise in meeting our obligations to comply with the new regulatory requirements and ensure that our systems, practices, controls, technology and, above all, culture meet the highest standards," he said.

Last month, the Federal Reserve asked the bank to resubmit its capital plan by the end of September, to address the Fed's concerns about unspecified weaknesses. JPMorgan said Friday it is "dramatically increasing the resources deployed" to address the Fed's concerns, and said it "intends to fully address" the Fed's requirements.

Dimon also said he was "very pleased" with the first-quarter results, and painted a picture of an improving economy. He said that consumers are "healthier and more confident," noting that bank reduced the amount it set aside to cover bad loans in its retail banking business. He said the bank was seeing signs of a healing economy, including improved housing prices.

One exception Dimon noted, however, was loan demand. Total loans slipped about 4 percent compared to a year ago, a trend likely to be repeated when the other big banks report their earnings.

"Small businesses remain cautious about the recovery and fiscal uncertainty, and are not investing their capital," Dimon said, though he added that the businesses were "well positioned to invest in growth once they decide to."

Shares of JPMorgan Chase & Co. (JPM) are down about 1 percent in pre-market trading, off 42 cents to $48.89.

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lol- have to laugh. President Obama campaigned against this very kind of Wall Street greed and probably won because of it. And then Wall Street got smart and started contributing huge dollars to his Re-election Fund. And now they are recognizing record profits. How cozy. Had such high hopes when Obama was elected. What a disappointment he has been. This house of speculative cards will fall again, and guess who gets to pay for it......us, the working class stiffs.

April 12 2013 at 3:49 PM Report abuse +1 rate up rate down Reply

A quality company doing a lot of good things and the results are showing

April 12 2013 at 11:57 AM Report abuse rate up rate down Reply

We've got to stop "fining" these criminals and start locking them up.

April 12 2013 at 11:19 AM Report abuse +1 rate up rate down Reply

If they try to get rid of Jamie Dimon they are just fools.....he appears to be the best of the best..

April 12 2013 at 10:41 AM Report abuse rate up rate down Reply

Lets outsource Jamie Diamond. Send him to China to see if he can loose their money too!

April 12 2013 at 10:41 AM Report abuse rate up rate down Reply

the elites loot the future to bribe the present

April 12 2013 at 10:10 AM Report abuse rate up rate down Reply

Profit soar on less income - they must be riding those Muppets hard!

April 12 2013 at 9:43 AM Report abuse +2 rate up rate down Reply

I can absolutely tell you one reason their profits soared. They bought out Mmodal last year, a nationwide transcription company that transcribes medical reports for hospitals across the country. Mmodal has been sending EVERYBODY'S personal medical records to India to have them transcribed at a huge cost savings. Meanwhile, transcriptionists in this company are losing their jobs, Thanks Jamie. You had better make sure the cultural standards in India are up to par buddy, or you're going to lose a lot of business. Thanks again Jamie.

April 12 2013 at 9:28 AM Report abuse +1 rate up rate down Reply
1 reply to PAMELA WORM's comment

You obviously are a part of something the bank is making money on. Perhaps you have been let go because of their India employment savings. If the U.S. has to pay minimum wage to it's workers, we cannot compete with India. As long as our Goverment rewards companies for hiring workers out of our country, lost jobs will continue to be the norm. If you voted for Obama like 52% of this country did, you should all loose your jobs and like it.

April 12 2013 at 12:57 PM Report abuse rate up rate down Reply

So the world is not gonna end? awesome

April 12 2013 at 9:16 AM Report abuse +1 rate up rate down Reply