LONDON, UK / ACCESSWIRE / July 17, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on JPMorgan Chase & Co. (NYSE: JPM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=JPM, following the Company’s disclosure of its financial results for the second quarter fiscal 2017 (Q2 FY17) on July 14, 2017. The New York-based bank’s quarterly net revenues and diluted EPS grew 5% and 17% y-o-y, respectively; outperforming Wall Street’s forecasts. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:
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During the three months ended June 30, 2017, JPMorgan reported total net revenues of $25.47 billion, which was above $24.38 billion recorded in Q2 FY16. The Company’s managed total revenues increased to $26.41 billion in Q2 FY17 compared to $25.21 billion in the year ago same period. Total net revenues (managed) for the reported quarter also beat market consensus estimates of $24.8 billion.
In Q2 FY17, JPMorgan’s net interest income (managed) grew 8% y-o-y to $12.55 billion from $11.65 billion in the last year’s same quarter. The growth in net interest income is primarily attributed to primarily driven by the net impact of rising rates and loan growth, partially offset by declines in Markets net interest income. Non-interest revenues (managed) for Q2 FY17 were also up by 2% y-o-y to $13.86 billion from $13.56 billion in Q2 FY16.
The financial services firm’s net income applicable to common stockholders for Q2 FY17 came in at $6.56 billion, or $1.82 per diluted share, rising from $5.73 billion, or $1.55 per diluted share in Q2 FY16. Moreover, net income numbers for Q2 FY17 outshined Wall Street’s consensus estimate of $1.57 per diluted share.
JPMorgan reported return on assets of 1.10% in Q2 FY17 versus 1.02% in the year ago comparable quarter. The return on common equity rose to 12% in Q2 FY17 from 10% reported in last year’s comparable period. Additionally, the bank’s tangible return on common equity for the reported quarter came in at 14% compared to 13% in Q2 FY16.
As on June 30, 2017, the Company’s Basel III common equity Tier 1 capital stood $186.94 billion, or 12.6%, compared to $179.59 billion, or 12.2%, in the year ago same period. The Company’s Basel III Tier 1 capital ratio was 14.3% at the end of Q2 FY17 compared to 13.9% at the close of Q2 FY16. Additionally, tangible book value per share stood at $53.29 as on June 30, 2017, up 6% from $50.21 per share as on June 30, 2016.
In Q2 FY17, Consumer & Community Banking segment’s revenues came in relatively flat at $11.41 billion compared to $11.45 billion in prior year’s same quarter. Meanwhile, the segment’s net income declined 16% y-o-y in Q2 FY17 to $2.22 billion from $2.66 billion in Q2 FY16.
Corporate & Investment Bank’s revenues for Q2 FY17 came in at $8.89 billion, which was 3% lower than $9.17 billion reported in the year ago corresponding quarter. Meanwhile, the segment’s net income grew 9% in Q2 FY17 to $2.71 billion from $2.49 billion in Q2 FY16.
JPMorgan’s Commercial Banking’s net revenues for Q2 FY17 stood at $2.09 billion, up 15% y-o-y, primarily driven by higher net interest income due to higher deposit spreads and loan growth. The segment’s net income surged 30% y-o-y in Q2 FY17 to $902 million in the reported quarter.
Driven by higher spreads, Asset Management segment’s net revenues grew 9% to $3.21 billion in Q2 FY17 from $2.94 billion in Q2 FY16. The segment contributed $624 million to combined net income in Q2 FY17 compared to $521 million in the previous year’s same period.
Meanwhile, JPMorgan’s Corporate segment reported net revenues of $804 million, with net income of $570 million in Q2 FY17.
Dividend and Share Repurchase
In a separate press release on June 28, 2017, JPMorgan’s Board of Directors hiked the quarterly dividend from $0.50 per share to $0.56 per share. The dividend is payable on October 31, 2017, to shareholders of record at the close of business on October 06, 2017.
The Company informed the Wall Street that it had returned capital worth $4.5 billion to its shareholders in Q2 FY17, which included $2.7 billion of net share buyback and $0.50 per share in form of quarterly cash dividend. Furthermore, the Company’s Board of Directors also announced under a new common equity repurchase program of up to $19.4 billion commencing from July 01, 2017, and ending on June 30, 2018.
In its outlook for full year FY17, the Company expects net interest income to rise $4.0 billion y-o-y. The Company’s management anticipates adjusted expenses during FY17 to be approximately $58 billion and forecasts net charge offs during FY17 to be +/- $5 billion. Furthermore, the Company forecasts average core loan growth to be approximately 8%.
JPMorgan Chase’s share price finished last Friday’s trading session at $92.25, marginally sliding 0.91%. A total volume of 22.14 million shares has exchanged hands, which was higher than the 3-month average volume of 14.49 million shares. The Company’s stock price soared 9.30% in the last three months, 6.97% in the past six months, and 43.87% in the previous twelve months. Additionally, the stock gained 6.91% since the start of the year. Shares of the Company have a PE ratio of 14.22 and have a dividend yield of 2.17%. The stock currently has a market cap of $330.77 billion.
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SOURCE: Pro-Trader Daily