JPMorgan Chase & Co. reports first-quarter 2009 net income of USD2.1 billion, compared with net income of USD2.4 billion in the first quarter of 2008. Earnings per share were USD0.40, compared with USD0.67 in the first quarter of 2008.
During the first-quarter 2009 JPMorgan Chase managed:
– to generate record firmwide revenue of USD26.9 billion and pretax, pre-provision profit of USD13.5 billion (on a managed basis1),
– to get solid growth in liability balances in Commercial Banking and Treasury & Securities Services,
– to have Washington Mutual integration on track, driving Retail Banking growth in deposits by 62% and in checking accounts by 126%,
– to reach net assets under management inflows of USD119 billion over the past year in Asset Management,
– to strengthen further Fortress balance sheet:
Tier 1 Capital made up USD137.2 billion, 11.3% Tier 1 Capital ratio (9.2% excluding TARP capital), USD87.2 billion of tangible common equity1, 7.2% of risk-weighted assets. The company added USD4.2 billion to credit reserves, bringing total to $28.0 billion, and firmwide loan loss coverage ratio to 4.53%2 as of 31 March 2009.
In addition, JPMorgan extended approximately USD150 billion in new credit to an estimated 4.5 million consumers (through credit cards, mortgages, auto and student loans), and to small and mid-sized businesses and large corporations. Company purchased nearly USD34 billion of mortgage-backed and asset-backed securities.
Another significant achievement is prevention of almost 150,000 loan foreclosures since October 2008, bringing the total to over 400,000 since early 2007; and opening the remaining 22 of our 24 new Chase Homeownership Centers and over 650 additional loan counselors during the quarter.
“The firm earned more than $2 billion this quarter, despite extremely high credit costs of USD10 billion (including USD4 billion added to reserves), largely in Card Services and Retail Financial Services,” says Jamie Dimon, chairman and chief executive officer.
“Importantly, we generated record firmwide revenue; record revenue and net income in the Investment Bank; and benefited from underlying growth in Retail Banking, including increased deposits and checking accounts, higher mortgage refinancing volumes and excellent progress on the Washington Mutual integration. We also continued to see solid volumes and earnings across Commercial Banking, Treasury & Securities Services and Asset Management.”
“We remain focused on capital and balance sheet strength. These levels of capital and reserves, combined with our significant pre-provision earnings power, enable us to withstand an even worse economic scenario than we face today.”
“We are maintaining our efforts to help the economy recover,” continues Jamie Dimon. “We continue to lend and have extended approximately USD150 billion in new credit to consumer and corporate customers during the first quarter. We made additional progress on our foreclosure prevention program, opening the remaining 22 of our 24 new Chase Homeownership Centers during the quarter, and continued working towards our goal of preventing 650,000 foreclosures by the end of next year to help keep people in their homes. Throughout this crisis, we have remained committed to doing our part to help bring stability to the communities in which we operate and to the financial system overall.”
L.D.