Analyst Note| Eric Compton, CFA |
Wide-moat-rated JPMorgan reported first-quarter earnings per share of $2.63, missing the $2.72 FactSet consensus but roughly in line with our $2.60 estimate. Revenue on a reported basis was $30.7 billion compared with our estimate of $31.2 billion, as fees came in a bit below what we had projected. While the bottom-line numbers sound dramatic, with net income down 42%, remember that we are going from an unusual period of recording provisioning benefits (a $4 billion benefit in the first quarter of last year) to a more normal period of recording provisioning as a cost ($1.5 billion in the current quarter). Preprovision net revenue was down only 15% year over year, and the bank still managed a return on tangible equity of 16%.