JP Morgan Chase (NYSE: JPM) has surpassed Q4 estimates and announced 24% gain in Q4 Bottom-line. The company reported a net profit of $6.73 billion for the quarter as against $5.43 billion in the corresponding quarter. The revenues for the quarter was at $24.33 billion, up 2.4%. JP Morgan Chase stock rose over 0.5% (As of January 13th, 2017; Source: Google finance) and by 28.3% in the last three months.
The bank reported 12% YoY rise in average core loan and 3% on QoQ. The company had Basel III fully phased-in CET1 capital of $182 billion, and an advanced CET1 ratio of 12.2% and a standardized CET1 ratio of 12.3%. The company delivered strong capital returns and returned $3.8 billion to shareholders in Q4FY16, including $2.1 billion of net repurchases. The company declared a dividend of $0.48 per share.
For the full year, the company reported net interest income of $47.3 billion and net income of $24.7 billion. The RoE was at 10% compared to 11% in previous year.
As per the division’s performance, Consumer and Community Banking (CCB) reported revenues of $11 billion for Q4FY16 and net income of $2.36 billion. The company reported 11% YoY growth in average deposits while average loans were up 7% YoY and core loans were up 14%.
Corporate and Investment Bank (CIB) reported revenues of $8.5 billion and net income of $3.4 billion. The RoE was at 20%. Investment Banking revenues were flat at $1.5 billion driven by higher debt underwriting fees. The division was ranked #1 in Global IB fees fees for FY16. Treasury service revenues was up 5% YoY to $950 million while lending revenues were down 11% YoY to $346 million. Company’s Market and Investor Services revenues grew to $4.5 billion while securities services revenue declined by 5% YoY to $887 million. Credit adjustment and others gained $272 million.
Commercial Banking revenues division has reported record revenues of $1.96 billion, up 12% YoY and flat QoQ supported by 17% rise in net interest income of $1.4 billion. The gross IB revenues were up 34% YoY to $608 million. The division reported 14% YoY rise in average loan balances of $189 billion.
Asset Management revenues were up 1%YoY to $3.1 billion while net income grew 16% YoY and 5%QoQ to $586 million. The division registered record average loan balances of $115.1 billion record average deposit balance of $158.3 billion, up 9%.
Corporate reported the loss of $341 million for Q4FY16 on account of the net loss of $197 million from Treasury and CIO business and other corporate loss of $144 million.
Going forward, the Bank expects Q1FY17 firm-wide net interest income to be up modestly QoQ.