JPMorgan Chase (JPM 85.85, +0.45) has climbed 0.5% in pre-market after beating first quarter expectations.
The banking giant reported above-consensus first quarter earnings of $1.65 per share on a 6.2% year-over-year increase in revenue to $25.59 billion, which was also ahead of market expectations.
Average core loans increased 9.0% year-over-year during the first quarter, which was a bit shy of guidance for growth of 10.0%.
JPMorgan Chase ended the quarter with a Tier 1 capital ratio of 12.4%, up from 11.7% one year ago.
Adjusted overhead ratio held at 58.0% while first quarter adjusted expense increased to $14.80 billion from $13.90 billion one year ago.
Net interest income increased 6.0% year-over-year to $12.40 billion. The increase was due to loan growth and the impact of higher rates. Noninterest revenue also increased 6.0%, growing to $13.20 billion. This was fueled by strength in Corporate & Investment Bank, which offset new Card account origination costs and lower mortgage servicing rights.
In the Consumer & Community Banking segment, Consumer & Business Banking revenue grew 8.0% to $4.90 billion thanks to strong deposit growth. Mortgage Banking revenue decreased 18.0% to $1.50 billion, due to lower net servicing revenue and servicing portfolio run-off. Card, Commerce Solutions & Auto revenue declined 3.0% to $4.50 billion. New Card account origination costs were partially offset by higher net interest income on higher loan balances and higher auto lease volumes.
In the Corporate & Investment Bank segment, net revenue grew 17.2% year-over-year to $9.54 billion while net income surged 63.8% to $3.24 billion.
Provision for credit losses declined 27.9% year-over-year to $1.32 billion.
The bank expects that net interest income will show a sequential increase of roughly $400 million during the second quarter. For 2017, net interest income is expected to be up about $4.50 billion year-over-year.