JP Morgan Shares Slide Despite Earnings, Revenue Beat As Bank Earnings Begin

JP Morgan Shares Slide Despite Earnings, Revenue Beat As Bank Earnings Begin

During a Q1 that was marked by steadily climbing interest rates and fresh record highs across equity markets, JP Morgan kicked off bank earnings season by beating on its expectations, but not by a wide enough margin to impress investors, who pushed the stock lower in reaction.

Here’s a breakdown of the main numbers via Bloomberg:

  • Adjusted revenue $33.12 billion, +14% y/y, estimate $30.42 billion (range $29.14 billion to $32.79 billion)
  • EPS $4.50 vs. 78c y/y
  • Return on equity +23% vs. +4% y/y
  • Assets under management $2.8 trillion

It’s shares traded lower in premarket, cutting into a year-to-date gain, as investors were dissatisfied with loan release figures that helped bolster the bank’s net income. The reserve releases are non-recurring, and is expected to be a key figure in the eyes of analysts, since the release of reserve capital is largely a consequence of the improving economic outlook as COVID restrictions are rolled back.

Readers can find the press release below:

Tyler Durden
Wed, 04/14/2021 – 06:54

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