JPMorgan shares fell 2.3% on the stock market in the pre-opening of Wall Street after the banking group presented its results for the first quarter of 2024. Specifically, JPMorgan Chase obtained a profit of $13,419 million in these first three months of the year, 6.3% more than the previous year, now including First Republic Bank, acquired in May 2023.
The entity’s results reflect the impact of interest rate increases, with an 11.4% increase in net interest income, up to $23,082 million in the quarter. In total, net income between January and March amounted to $41,934 million, 9.3% above the turnover recorded by the entity in the first tranche of 2023.
The provisions to deal with non-payments of its credit portfolio were 1,884 million dollars. This represents a decline of 17.2% compared to the same period last year.
The bank has specified that its first quarter accounts reflect a net profit attributable to the First Republic of 668 million dollars. JPMorgan acquired it in May of last year due to doubts surrounding its viability after the instability unleashed by the collapse of Silicon Valley Bank.
This figure reflects 1,300 million in net interest billing, 315 million in non-financial income), 806 million in non-financial expenses and a net benefit of 31 million dollars from the provision for credit losses.
Non-interest expenses incurred by JPMorgan, including compensation, rent, technology, professional services or marketing, were $22,757 million, up 13.2%.
Regarding the group’s financial metrics, the financial profitability (ROE) was 17%, one point less, while the CET1 capital ratio, which measures the highest quality assets, was 15% after rising 1.2 . percentage points. Assets under management (AUM) then rose to $3.564 trillion, up 18.6%.
The president and CEO of JPMorgan Chase, Jamie Dimon, has maintained that the CET1 ratio is “exceptionally high”, which gives the firm the flexibility to reinvest in the company’s growth and maintain its attractiveness.
He has also pointed out that, although many macroeconomic indicators are “favorable”, geopolitical tensions, the persistence of inflationary pressures and a large-scale tightening of financial conditions weigh on the horizon. “We don’t know how these factors will play out, but we must prepare the firm for a wide range of possible environments to ensure that we can always be available to clients,” Dimon said.
The manager also recalled that last month it was announced that the quarterly dividend payable on April 30 would increase by 10%, to 1.15 dollars (1.08 euros) per share.
