Strong Second Quarter Results - Report on JPMorgan Chase

Jul 21, 2015, 09:30 ET from www.aciassociation.com

NEW YORK, July 21, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on JPMorgan Chase & Co. (NASDAQ: JPM). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=JPM

Highlights from our JPM Report include:

  • Earnings Roundup - On July 14, 2015, JPMorgan Chase & Co. released results for the second quarter of 2015. The net income for the period amounted to $6.3 billion, 5% higher than $5.9 billion in the previous year quarter. Earnings per share of the Company increased from $1.46 in Q2 2014 to $1.54 in Q2 2015. The Company generated net revenue of $24.5 billion, reflecting a decline of 3% from $25.3 billion in Q2 2014. The decline in revenue was driven by lower Mortgage Banking revenue and lower Corporate and Investment Bank Markets revenue related business simplification, partially offset by growth in Asset Management.
  • Highlights from Consumer and Community Banking (CCB) - CCB segment of the Company generated net revenue of $11.0 billion in Q2 2015, lower than $11.5 billion in prior year quarter. The decline was attributed to spread compression and lower Mortgage Banking revenue. In addition, the net income of the segment was recorded at $2.5 billion, up 1% YoY.
  • Corporate and Investment Bank (CIB) delivers Income Growth - The Company's CIB segment's revenue for Q2 2015 stood at $8.7 billion, decreasing by 6% YoY. Meanwhile, non-interest expenses of CIB reduced to $5.1 billion, from $6.1 billion in the prior year quarter. Decline in non-interest expenses were mainly due to business simplification, lower legal expense and lower compensation expense. In addition, net income of the segment for the period amounted to $2.3 billion, rising by 10% from $2.1 billion in Q2 2014.
  • Higher Revenue from Commercial Banking (CB) - The CB segment of the Company contributed $1.7 billion to the total revenue of the Group. Non-interest revenue was $0.6 billion, an increase of 6% YoY. Further, net income of CB fell by 22% YoY to $0.5 billion in Q2 2015, due to higher provision for credit losses.
  • Asset Management's (AM) Performance - AM segment of the Company recorded net revenue of $3.2 billion, reflecting an increase of 6% from c. $3 billion in Q2 2014. Whereas, net income of the segment reduced by 21% YoY to $0.5 billion, driven by high non-interest expenses due to higher legal expense and the impact of a loss from a held-for-sale asset.
  • Results of Corporate Segment - Lastly, the Company's corporate segment recorded a net income of $0.4 billion in Q2 2015, up 311% YoY, reflecting a higher benefit from discrete tax items and lower legal expense. Meanwhile, non-interest expense for the period declined to $0.04 billion from $0.2 billion in previous year quarter driven by lower legal expense.

To find out how this influences our rating on Image JPMorgan Chase & Co read the full report in its entirely here: http://www.aciassociation.com/?c=JPM

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