JPMorgan Chase & Co.(NYSE:JPM) stock rose over 0.2% on 15th April, 2021 (as of 12:26:24 UTC-4 · USD; Source: Google finance) after the company posted better than expected results for the first quarter of FY 21. For the first quarter, the company reported net income of $14.3 billion, up $11.4 billion, mainly driven by credit reserve releases of $5.2 billion compared to credit reserve builds of $6.8 billion in the prior year. Noninterest revenue was up 39% to $20.1 billion, driven by higher CIB Markets revenue, higher Investment Banking fees, and the absence of losses in Credit Adjustments and Other and markdowns on heldfor-sale positions in the bridge book13 recorded in the prior year. Net interest income was down 11% to $13.0 billion, predominantly driven by the impact of lower rates, partially offset by balance sheet growth.
Moreover, for Consumer & Community Banking, the company delivered net income of $6.7 billion, up $6.5 billion, driven by credit reserve releases compared to reserve builds in the prior year. The segment’s net revenue was $12.5 billion, down 6%. Consumer & Business Banking net revenue was $5.6 billion, which is down 10%, driven by the impact of deposit margin compression, largely offset by growth in deposit balances. for Corporate & Investment Bank, the company delivered the net income of $5.7 billion, up $3.8 billion, with net revenue of $14.6 billion, up 46%. Banking revenue was up 70% to $4.5 billion. Investment Banking revenue was $2.9 billion, which is up $2.0 billion, driven by higher Investment Banking fees, that rose 57%, due to higher fees across products, and the absence of markdowns on held-for-sale positions in the bridge book13 recorded in the prior year. Asset & Wealth Management’s net income rose 86% to $1.2 billion and net revenue was $4.1 billion, up 20%, mainly driven by higher management fees, higher deposit and loan balances, as well as net valuation gains, partially offset by deposit margin compression. The Commercial Banking’s net income was $1.2 billion, up $1.0 billion, mainly due to reserve builds in the prior year. The segment’s net revenue of $2.4 billion was up 11%, predominantly driven by higher deposit balances, higher lending revenue due to increased portfolio spreads, higher investment banking revenue, and the absence of markdowns on held-for-sale positions in the bridge book13 recorded in the prior year, largely offset by deposit margin compression.
JPM in the first quarter of FY 21 has reported the adjusted earnings per share of $4.50, beating the analysts’ estimates for the adjusted earnings per share of $3.05, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 14 percent to $32.27 billion in the first quarter of FY 21, beating the analysts’ estimates for revenue by 7.30%.