JPMorgan (NYSE: JPM) kicked off big-bank reporting season with first-quarter earnings that were decidedly mixed.
So far investors can’t make up their minds whether to focus on the good news or the bad news. JPM shares have been volatile all morning, ranging from down 1.5% to up 0.3%.
Here’s a breakdown of both the good and the bad from JPMorgan’s earnings report:
- The earnings topped Street expectations. Earnings per share of $1.59 exceeded analyst estimates of $1.39 a share.
- The bank upped its dividend by 27% – the largest percentage increase in over two years. The quarterly payout was bumped to 38 cents a share from 30 cents a share.
- Bank deposits rose 10%, while mortgage originations increased 37%.
- Investment banking profits – a sore spot for JPMorgan in the wake of its “London Whale” disaster – increased 28% from a year ago and 30% from last quarter.
- Revenue was a bit weak. The $25.8 billion JPMorgan made fell a hair shy of analyst expectations ($25.86 billion). Net revenue was also lacking, declining 6% from the first quarter a year ago.
- Though it beat estimates, earnings were down from last year’s Q1 – dropping from $2.9 billion to $2.6 billion.
- Mortgage banking profits were down 31% from a year ago.
- CEO Jamie Dimon’s position with the company is tenuous. Blamed for his negligence in the London Whale incident – which resulted in a $6.2 billion loss for the bank – Dimon could be stripped of his chairmanship by a shareholder vote next month.