Earnings Season Q1-2024 Big Banks
JP Morgan (JPM)
JPMorgan Chase non-GAAP EPS of $4.63 beats by $0.50, revenue of $41.93B (Up 9.5% YoY) beats by $240M
Q1 -24 Net Interest Income, NII declined 4% sequentially as expected, due to deposit margin compression.
Full Year Net Interest Income, NII guidance is unchanged at $90Bn
Adjusted expenses guidance is $1Bn higher at $91Bn V $90Bn for the year.
The bank card services net charge-off rate is projected to be less than 3.50% vs. its previous guidance of 3.50% – this is a relief, but JPM has a tendency to over provide, so not much of a surprise. Similarly, overall Provision for credit losses was lower at $1.88B, vs. consensus of $2.74B and compared with $2.76B in Q4 and $2.28B in Q1 2023.
The stock is down 2% premarket, the higher adjusted expense guidance seems to be the main culprit.