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JPMorgan Chase (JPM +2.5%) is trading higher following its Q1 earnings report this morning. The company reported another healthy beat on EPS, its fifth consecutive EPS beat of at least $0.24. Revenue grew 8.0% yr/yr to $45.3 bln, which was a good bit better than expected.

• Net interest income was $23.4 bln, up 1%. Noninterest revenue was $22.6 bln, up 17%. Net interest income, excluding Markets, was $22.6 bln, down 2%, driven by lower rates and deposit margin compression as well as lower deposit balances in Consumer & Community Banking (CCB). JPM reported a consolidated provision for credit losses of $3.3 bln. Net charge-offs were $2.3 bln, up $376 mln, predominantly driven by Card Services.
• CCB segment revenue grew 4% yr/yr to $18.31 bln. Banking & Wealth Mgmt revenue was $10.25 bln, down 1%, driven by lower net interest income on lower deposit balances. Home Lending revenue grew 2% to $1.2 bln, driven by higher net interest income. Card Services & Auto revenue grew 12% to $6.9 bln, up 12%, predominantly driven by higher Card Services net interest income on higher revolving balances as well as higher auto operating lease income.
• JPM said that it did notice some front loading where consumers are buying items ahead of tariff price increases. Also, some retailers talk about weakness, especially on the lower income segment. JPM says this is also evident in its credit card data and the cash buffers in people's checking accounts. However, JPM says it is not seeing signs of distress in the lower income segment.
• In its Commercial & Investment Bank (CIB) segment, revenue rose 12% yr/yr to $19.67 bln. Markets revenue rose to $9.7 bln, an exceptionally strong quarter with record revenue in Equities. However, tariffs have caused clients to shift focus away from strategic priorities to more short terms concerns like supply chain optimization. This has lowered JPM's investment banking pipeline outlook.
• In terms of the macro view, CEO Jamie Dimon says the economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and "trade wars," ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility.

JPM posted a solid Q1 report all around. We think the strong results were tempered by Dimon's cautious comments about the economy. The uncertainty created by tariff issues has slowed decision making by companies, both large and small. However, Dimon's cautious comments were not a big surprise and follows pretty closely to what he said in his shareholder's letter this week and in press interviews. Getting some trade agreements in place as quickly as possible would remove a lot of uncertainty.

Also, we think Dimon's comments about lower income consumers not showing signs of distress has reassured investors. We think this report bodes fairly well for other banks set to report in the coming days. One thing that stood out to us was Dimon saying that he expects many companies will remove guidance when they report earnings in the coming weeks.