JPMorgan, Wells Fargo Earnings Focus
JPMorgan (JPM) kicked off earnings season for financials this morning, reporting earnings of $5.38 billion, or $1.31 a share, down from $5.56 billion, or $1.28 a share, in the year-earlier period. Revenue grew 6% to $26.7 billion from $25.2 billion. The bank beat both top- and bottom-line estimates, as analysts were modeling for the bank [...]

JPMorgan (JPM) kicked off earnings season for financials this morning, reporting earnings of $5.38 billion, or $1.31 a share, down from $5.56 billion, or $1.28 a share, in the year-earlier period. Revenue grew 6% to $26.7 billion from $25.2 billion.

The bank beat both top- and bottom-line estimates, as analysts were modeling for the bank to earn $1.16 a share on $24.4 billion in revenue.

Also this morning JPMorgan increased its quarterly dividend by a nickel, to 30 cents a share and said its board approved a $15 billion share repurchase plan.

Looking at individual segments, the firm’s investment-banking saw profits of $1.68 billion, down 29% from a year earlier, but that figures was still more than double than the fourth quarter. Its retail-services business reported earnings of $1.75 billion, compared with a loss of $399 million in the year-ago period, again more than double the $533 million profit in the fourth quarter.

Overall, the bank’s credit-loss provisions totaled $726 million, down from $1.17 billion a year ago and less than the $2.18 billion in the fourth quarter.

Wells Fargo (WFC) also reported with a beat this morning. The bank said it earned $4.25 billion, up from a year-earlier profit of $3.76 billion. Per-share earnings, reflecting the payment of preferred dividends, rose to 75 cents from 67 cents a year ago. Revenue increased 6.4% to $21.64 billion, marking Wells’ highest revenue in nine quarters.

Both earnings and revenue came in ahead of the consensus estimates of 73 cents and $20.51 billion.

Credit-loss provisions totaled $2 billion in the first quarter, shrinking from the $2.21 billion in the year-ago period and $2.04 billion in the previous quarter.

Net charge-offs also fell to 1.25% of average loans, compared with 1.73% a year earlier and 1.36% in the fourth quarter.

The bank originated $129 billion of mortgages in the first quarter, up from $120 billion in the fourth quarter and $84 billion in the year-ago period. (Wells is the nation’s largest mortgage lender.) Mortgage banking non-interest income totaled $2.87 billion, growing  42% from a year earlier.

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