JPMorgan reported revenue was $44.9 billion and managed revenue was $45.7 billion. Expenses totaled $23.8 billion, resulting in a reported overhead ratio of 53% and a managed overhead ratio of 52%. Credit costs were $2.8 billion, including $2.4 billion of net charge-offs and a $439 million net reserve build. Average loans increased 5% year-over-year and 3% quarter-over-quarter, while average deposits rose 6% year-over-year and 3% quarter-over-quarter. In the Consumer & Community Banking (CCB) segment, return on equity (ROE) was 36%. Average deposits declined 1% year-over-year but rose 1% quarter-over-quarter; client investment assets grew 14% year-over-year. Average loans were up 1% year-over-year and flat quarter-over-quarter, with Card Services posting a net charge-off rate of 3.40%. Debit and credit card sales volume increased 7% year-over-year, and active mobile customers grew 8% year-over-year.
Consumer & Community Banking
Net income of $5.2B, up 23% YoY
Revenue of $18.8B, up 6% YoY, predominantly driven by higher net
interest income in Card Services on higher revolving balances, higher
noninterest revenue in Banking & Wealth Management, as well as higher
operating lease income in Auto
Expense of $9.9B, up 5% YoY, largely driven by higher technology
expense and higher auto lease depreciation
Credit costs of $2.1B
NCOs of $2.1B, up $22mm YoY, primarily driven by Card Services
Reserves were relatively flat, as changes in the weighted-average
macroeconomic outlook were offset by loan growth in Card Service
Commercial & Investment Bank
IB revenue of $2.7B, up 9% YoY, predominantly driven by higher debt underwriting and advisory fees, partially offset by lower equity underwriting fees
Payments revenue of $4.7B, up 4% YoY; excluding the net impact of equity investments, revenue up 3%, driven by higher deposit balances and fee growth, predominantly offset by deposit margin compression Lending revenue of $1.8B, down 6% YoY, largely driven by higher losses on hedges of the retained lending portfolio
Asset & Wealth Management
Revenue of $5.8B, up 10% YoY, driven by growth in management fees on strong net inflows and higher average market levels, as well as higher brokerage activity and higher deposit balances Expense of $3.7B, up 5% YoY, driven by higher compensation, includinghigher revenue-related compensation and continued growth in private banking advisor teams, as well as higher distribution fees AUM of $4.3T was up 18% YoY and client assets of $6.4T were up 19% YoY, each driven by continued net inflows and higher market levels For the quarter, AUM had long-term net inflows of $31B and liquidity net inflows of $5B Average loans of $241B, up 7% YoY and 3% QoQ Average deposits of $248B, up 9% YoY and 2% QoQ
Jamie Dimon, Chairman and CEO, commented on the financial results: “We reported another quarter of strong results, generating net income of $15.0 billion or net income of $14.2 billion excluding a significant item.” Dimon continued: “Each of the lines of business performed well. In the CIB, Markets revenue rose to $8.9 billion, and we supported clients as they navigated volatile market conditions at the beginning of the quarter. Meanwhile, IB activity started slow but gained momentum as market sentiment improved, and IB fees were up 7% for the quarter. In CCB, we added approximately 500,000 net new checking accounts, which drove sequential growth in checking account balances. In Card, we launched a refreshed Sapphire Reserve along with a new Sapphire Reserve for Business, with positive early reactions and strong new card acquisitions. Finally, in AWM, asset management fees rose 10%, and we saw continued client asset net inflows of $80 billion, with client assets crossing over $6.4 trillion.”