Chase Q119 results beat analyst forecasts with net income up 5% to $9.18bn and revenues up by 5% to $29.9bn.
JPMorgan Chase is the largest US bank by assets and the first major lender to report first quarter earnings.
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Jamie Dimon, chairman and CEO, says: “In the first quarter of 2019, we had record revenue and net income. Performance is strong across each of our major businesses and a more constructive environment.
Even amid some global geopolitical uncertainty, the US economy continues to grow. Employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong.”
Chase Q119 results: retail banking highlights
Average core loans rise by 4% year-on-year with average deposits up by 3%.Client investment assets are ahead by 13% y-o-y with credit card sales volume up by 10%. Merchant processing volume rises by a healthy 13% y-o-y.
Dimon adds: “Client investment assets topped $300bn with record new money driven by our physical and digital channels. Consumer spending remains robust with credit card sales and merchant processing volume up double digits.
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By GlobalData“We continued to execute on our expansion plans, announcing 90 branches this year in new markets. We are creating tremendous opportunities for each of our businesses to better serve our clients.”
JPMorgan Chase’s retail focused Consumer & Business Banking unit posts net revenue of $6.6bn, up 15%. This is predominantly driven by higher net interest income as a result of higher deposit margins and balance growth.
Home Lending net revenue of $1.3bn is down by 11%, driven by lower net servicing revenue. Card, Merchant Services & Auto net revenue of $5.8bn billion is up 9%. The rise is driven by higher card net interest income on loan growth and margin expansion, and higher auto lease volume.
Chase Q119 results: channel highlights
Digital channel highlights include an 11% rise in active mobile banking customers to 34.4 million.
Total active digital banking customers rise by 6% to 50.6 million. Chase ends the first quarter with 5,028 branches, down by a net 78 outlets from 5,106 a year ago.
In contrast to main retail banking rivals Bank of America and Wells Fargo, Chase is investing in new branch openings. Chase plans to expand its retail branches in nine top US markets1 in 2019. It will also open dozens of new branch locations in Greater Washington, DC, Philadelphia and Boston.
Chase expects to open up to 90 new branches in new markets by the end of 2019.
The bank announced last year that it planned to open 400 new branches in new markets over the next five years. Chases says that approximately 30% of branches will be in low-to-moderate income communities.
