JPMorgan Chase & Co. has reported first-quarter 2010 net income of $3.3 billion, compared with $2.1 billion in the first quarter of 2009. Earnings per share were $0.74, compared with $0.40 in the first quarter of 2009.
“The Firm’s net income of $3.3 billion reflected another strong quarter for the Investment Bank, particularly in Fixed Income Markets, and continued solid performance across Asset Management, Commercial Banking and Retail Banking, says Jamie Dimon, chairman and chief executive officer. Unfortunately, these good results were partially offset by high losses in the consumer credit portfolios.”
Regarding the balance sheet, Dimon said: “Our first-quarter earnings generated additional capital, resulting in a very strong Tier 1 Capital ratio of 11.5% and a Tier 1 Common ratio of 9.1%. Total firmwide credit reserves were more than $39 billion, or 5.6% of total loans1. We continued to see delinquencies stabilize, and in some cases improve, in our credit portfolios. Ultimately, the health of these portfolios will track the health of the economy.”
Dimon further remarked: “We have continued to contribute to the economic recovery of small businesses and communities. Building on the efforts of the Obama Administration, we expanded our own efforts to support small businesses, launching an initiative to increase small-business lending to $10 billion by the end of 2010. During the quarter, we extended more than $2.1 billion in new small-business credit, with Business Banking originations nearly doubling from last year. As a company, we also aim to employ more people and create new jobs across the country and around the world, with plans to add nearly 9,000 new employees in the U.S. alone.
Some highlights are as follow:
Investment Bank generated strong net income and Fixed Income Markets revenue
oRanked #1 in Global Investment Banking Fees
oCredit costs were a benefit of $462 million, driven by repayments and loan sales
Solid results from other businesses, including Asset Management, Commercial Banking and Retail Banking
Consumer credit trends for Chase portfolios showed improvement in delinquencies
oCard Services credit costs included $1.0 billion reserve reduction
oHome Lending credit costs included $1.2 billion reserve increase for Washington Mutual credit-impaired portfolios
Corporate results included $1.0 billion in trading and securities gains and $2.3 billion in additional litigation reserves, including those for mortgage-related matters
Balance sheet remained very strong: Tier 1 Capital of $131.4 billion, or 11.5%, and Tier 1 Common1 of $104.0 billion, or 9.1% (estimated)
More than $145 billion in new credit provided during the quarter, with continued focus on preventing foreclosures:
o4.0 million new card, home equity, mortgage and auto loans
oSmall-business credit originations of $2.1 billion across all businesses
o64,000 permanent mortgage modifications approved during the quarter; more than 750,000 modifications offered and nearly 185,000 approved since beginning of 2009
D.C.