JPMorgan 33% Profit Jump Beats Estimates on Reserve Releases
Source: Bloomberg
JPMorgan Chase & Co. (JPM)’s first- quarter profit rose 33 percent to a record, beating analysts’ estimates on cost cuts and an improvement in consumer credit quality that let the bank reduce loan-loss reserves.
First-quarter net income climbed to $6.53 billion, or $1.59 a share, from $4.92 billion, or $1.19, in the same period a year earlier, the New York-based company said today in a statement. Twenty-eight analysts surveyed by Bloomberg estimated earnings per share of $1.39 adjusted for a one-time accounting item.
JPMorgan Chief Executive Officer Jamie Dimon boosted profit by shrinking expenses 16 percent, as he grappled with a 4 percent reduction in total net revenue. Earnings also were buoyed by a drop in late payments, which helped the consumer bank reduce its loan-loss reserve by $1.2 billion.
“We saw an increase in release of reserves of about half a billion dollars more than we expected, and that also helped make the number come in favorable,” Marty Mosby, a bank analyst at Guggenheim Securities LLC in Memphis, said on Bloomberg Television’s “Surveillance” with Tom Keene.
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