…with a big earnings beat from JP Morgan.
Via Reuters:
- JPMORGAN REPORTS FIRST-QUARTER 2010 NET INCOME OF $3.3BILLION, OR $0.74PER SHARE, ON REVENUE1 OF $28.2BILLION
- JPMORGAN Q1 REVENUE $28.2 BLN
- JPMORGAN SAYS BALANCE SHEET REMAINED VERY STRONG: TIER 1 CAPITAL OF $131.4 BILLION
- JPMORGAN SAYS ASSETS UNDER CUSTODY WERE $15.3 TRILLION, UP 13%
- JPMORGAN SAYS CONTINUED TO SEE DELINQUENCIES STABILIZE
- JPMORGAN SAYS MORE THAN $145 BILLION IN NEW CREDIT PROVIDED DURING THE QUARTER
- JPMORGAN QTRLY PROVISION FOR CREDIT LOSSES ON A MANAGED BASIS $7,010 MLN
Now to put those figures into perspective, the consensus forecast was for earnings of 64 cent a share.
However, a quick look at the earnings report shows net income was boosted by the following:
Credit costs were a benefit of $462 million, driven by repayments and loan sales.
The provision for credit losses was a benefit of $462 million, compared with an expense of $1.2 billion in the prior year. The current-quarter provision reflected lower loan balances, driven by repayments and loan sales. The allowance for loan losses to end-of-period loans retained was 4.9%, compared with 7.0% in the prior year.
That said, there was also a strong performance from the fixed income division of JPMorgan’s investment banking arm.
Related links:
JP Morgan Q1 investor presentation
JP Morgan Q1 earnings release financial supplement