JPMorgan -1.8% after big Q4 EPS miss

JPMorgan Chase (NYSE:JPM) falls 1.8% in premarket trading after Q4 EPS of $1.98 comes in 23 cents short of consensus estimate; compares with $2.34 in Q3 and $1.07 in the year ago quarter.

In the quarter, net income from each of its major segments — Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management — retreated from Q3 levels. Consumer & Community Banking, though, had the strongest performance.

For the year, core loans rose 7%, in line with JPM’s expectations, says Chairman Jamie Dimon.

Q4 provision for credit losses increased to $1.55B vs. $948M in Q3 and $1.31B in the year-ago quarter.

Return on common equity 12% vs. 14% in Q3 and 7% in Q4 2017.

Consumer & Community Banking net revenue of $13.7B rose  3% from Q3 and 13% from a year ago; net income of $4.03B fell 1% from Q3 and rose 53% from Q4 2017.

Consumer & Business Banking revenue of $6.57B, up 3% Q/Q and up 18% Y/Y.

Home Lending revenue of $1.32B, up 1% Q/Q and down 8% Y/Y.

Card, Merchant Services & Auto revenue of $5.81B, up 4% Q/Q and up 14% Y/Y.

Corporate & Investment Bank net revenue of $7.24B fell 18% from Q3 and fell 4% from a year ago; net income of $1.98B fell 25% from Q3 and fell 15% from Q4 2017.

Banking revenue of $3.28B rose 1% Q/Q and up 6% Y/Y.

Markets & Investor Services revenue of $3.96B fell 29% Q/Q and fell 11% Y/Y.

Commercial Banking revenue of $2.31B rose 2% Q/Q, fell 2% Y/Y; net income of $1.04B fell 5% Q/Q, rose 8% Y/Y.

Asset & Wealth Management revenue of $3.44B fell 3% Q/Q and fell 5% Y/Y; net income of $604M fell 17% Q/Q and fell 8% Y/Y.

Previously: JPMorgan Chase misses by $0.23, misses on revenue (Jan. 15)


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