JP Morgan Chase & Co. tops Q1 estimates – the stock is rising

JP Morgan Chase & Co. (NYSE: JPM) announced Q1 financial results before the market open in the US on Friday.

The largest bank in the US beat both revenue and earnings per share (EPS) estimates for the first quarter of 2023, sending the stock price higher.

The company reported revenue of $38.349 billion vs. forecast of $36.125 billion.

EPS reported at $4.10 per share vs. $3.414 per share expected.

CEO commentary

”Our lines of business saw continued momentum in the quarter. In Consumer & Community Banking, consumer spending remained healthy with combined debit and credit card sales up 10% and card loans up 21%. In the Corporate & Investment Bank, Markets revenue fell 4% versus a very strong prior year, and we focused on supporting clients as they navigated volatile market conditions. Global Investment Banking fees remained challenged for the industry, although we significantly outperformed the overall wallet. In Commercial Banking, we earned record revenue, with exceptionally strong Payments revenue, up 98%. Finally, Asset & Wealth Management performed well with strong long-term inflows of $47 billion across products,” JP Morgan’s CEO, Jamie Dimon commented on the latest results.

Dimon also touched on the state of the US and global economy: ”The U.S. economy continues to be on generally healthy footings —consumers are still spending and have strong balance sheets, and businesses are in good shape. However, the storm clouds that we have been monitoring for the past year remain on the horizon, and the banking industry turmoil adds to these risks. The banking situation is distinct from 2008 as it has involved far fewer financial players and fewer issues that need to be resolved, but financial conditions will likely tighten as lenders become more conservative, and we do not know if this will slow consumer spending. We also continue to monitor for potentially higher inflation for longer (and thus higher interest rates), the inflationary impact of continued fiscal stimulus, the unprecedented quantitative tightening, and geopolitical tensions including relations with China and the unpredictable war in Ukraine. While we hope these clouds will dissipate, the Firm is prepared for a broad range of outcomes, and we are confident that we can serve the needs of our customers and clients in all environments.”

”Finally, I want to recognize our outstanding employees across the globe. Thanks to their efforts, we extended credit and raised $588 billion in capital in the quarter for small and large businesses, governments, and U.S. consumers, as well as efficiently onboarded a significant amount of new clients across many of our businesses,” Dimon concluded.

The stock rose after beating Wall Street expectations. Shares were up by 7.55% at the end of the trading day on Friday at $138.71 a share.

Stock performance

• 1 month: +10.27%
• 3 months: -2.99%
• Year-to-date: +3.45%
• 1 year: +10.00%

JP Morgan Chase & Co. price targets

• Barclays: $179
• Evercore ISI Group: $146
• Morgan Stanley: $153
• RBC Capital: $132
• Oppenheimer: $157
• Wells Fargo: $155
• Morgan Stanley: $173
• Piper Sandler: $157
• Deutsche Bank: $145
• Barclays: $189

JP Morgan Chase & Co. is the 17^th largest company in the world with a market cap of $406.68 billion, according to CompaniesMarketCap.

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Sources: JP Morgan Chase & Co., TradingView, MarketWatch, MetaTrader 5, Benzinga, CompaniesMarketCap