News & analysis
News & analysis

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

15 April 2023 By Klavs Valters

Share

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 17th largest company in the world with a market cap of $406.68 billion, according to CompaniesMarketCap.

You can trade JP Morgan Chase & Co. (NYSE: JPM) and many other stocks from the NYSE, NASDAQ, HKEX, ASX, LSE and DE with GO Markets as a Share CFD.

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

Ready to start trading?

The information provided is of general nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information provided, you should consider whether the information is suitable for you and your personal circumstances and if necessary, seek appropriate professional advice. All opinions, conclusions, forecasts or recommendations are reasonably held at the time of compilation but are subject to change without notice. Past performance is not an indication of future performance. Go Markets Pty Ltd, ABN 85 081 864 039, AFSL 254963 is a CFD issuer, and trading carries significant risks and is not suitable for everyone. You do not own or have any interest in the rights to the underlying assets. You should consider the appropriateness by reviewing our TMD, FSG, PDS and other CFD legal documents to ensure you understand the risks before you invest in CFDs. These documents are available here.

#Indice #Indices #IndicesTrading #IndexTrading #Shares #Stockmarket #Stocks