JPMorgan's Dimon: We're outpacing the industry
JPMorgan Chase (JPM) kicked off earnings season for the big banks, setting a positive tone for the rest of the financials.
JPMorgan, the largest U.S. bank by assets, reported earnings per share of $2.37 versus analysts’ estimates of $2.27 per share. The bank reported net revenue of $28.5 billion, compared to $25.85 billion the bank posted in the same period a year ago.
Shares of JPMorgan were last trading about 1% higher on Friday. Wells Fargo (WFC) and Citigroup (C) both reported stronger-than-expected earnings results on Friday.
“2018 is off to a good start with our businesses performing well across the board, driving strong top-line growth and building on the momentum from last year,” JPMorgan CEO Jamie Dimon said in the release. “We have been outpacing the industry on consumer deposit growth while attracting significant net new money and growing client investment assets 13%. Card sales and merchant processing volume both grew double digits, reflecting our investments in new products and innovation focused on our customers’ needs.”
Breaking the results down further, revenue from FICC trading came in at $4.55 billion, compared to $4.22 reported during the same quarter a year ago.
The bank posted record revenues from equity sales and trading of $2 billion, which was up 25% compared to a year ago.
Banking revenue came in at $3 billion, down 3%. The bank posted $1.6 billion in revenues from investment banking, down 7% “driven by lower debt and equity underwriting fees, which were partially offset by higher advisory fees.” The bank maintained its No. 1 ranking for investment banking fees.
Meanwhile, Dimon has remained upbeat about the U.S. economy, especially in the afterglow of corporate tax reform.
“The global economy continues to do well, and we remain optimistic about the positive impact of tax reform in the U.S. as business sentiment remains upbeat, and consumers benefit from job and wage growth,” Dimon said in the bank’s earnings release. “We are committed to doing our part – and this company can be an engine that helps drive inclusive economic growth for all Americans, including our $20 billion long-term investment in our employees and communities, and we’re working to tackle broader issues, like healthcare, that can help the whole country.”
In an interview with Yahoo Finance’s Andy Serwer last week, Dimon cheered corporate tax reform. He added that the estimated $1 trillion the entire tax bill would add to the deficit over the next ten years is “not a material number.”
“The benefits outweigh it, and I think it will cause some growth that will maybe make up for that — my own opinion,” Dimon said. “When you run a company, you have table stakes. Do a great job for your client. I think a competitive business tax rate is table stakes to the American economy.”
Dimon added that he’s “fine” if the government has to tax someone like him more.
“But don’t mess up the economy. The economy is what drives jobs, wages, R&D, innovation. It’s why we have the best military on the planet. It’s the economy, stupid. Let’s learn how to nurture that economy. Then, we can afford more, by the way. We can afford to take care of more people, put more in schools, put more in infrastructure, so don’t mess up the economy in the name of something good.”
More with Jamie Dimon:
JPMorgan’s Jamie Dimon talks China, trade and immigration in his annual letter
JPMorgan’s Jamie Dimon says the 10-year ‘could or should’ trade at 4%
DIMON: Immigration reform is ‘tearing apart’ U.S. society and holding back the economy
DIMON: The $1 trillion tax reform adds to the deficit is not a material number
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Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter.
