Results in chiaroscuro from the giants of Wall Street. JP Morgan, the first of the major US banks to publish their results, exceeded analysts' forecasts in the first quarter, raising dividends from 40 to 44 cents per share. Net earnings came in at $5,914 billion ($1,45 per share) versus $5,269 billion ($1,28 per share) in the same period last year. Analysts were expecting earnings of $1,40 per share.
Revenue rose to $24,82 billion from $23,845 billion in the same period last year and against $24,49 billion expected by analysts. Return on tangible equity (Rote) was 14%, against 13% in the first quarter of 2014.
The results were driven by trading activities, whose turnover increased by 12%, to 5,67 billion dollars, from 5,06 billion in the same period of 2014. The head of the investment banking division, Daniel Pinto, during Investor Day in February he spoke of a quarter characterized by high volumes and volatility, with customers increasingly active in trading.
The largest US bank by assets has budgeted legal fees of 13 cents a share and other one-time charges. In total, legal costs were $687 million before taxes in the first quarter, compared with what was described as "negligible" in the same period last year and $1,1 billion in the fourth quarter. In February, the bank said it was in talks with the US Justice Department as part of an investigation into alleged currency market manipulation. In November, JP Morgan paid US and UK authorities $XNUMX billion in a similar investigation.
The second US bank to publish accounts was Wells Fargo, the fourth-largest US institution by assets, which in the first quarter saw earnings fall 1,5% to $5,8 billion ($1,04 per share) versus $5,89 billion ($1,05 dollars per share) for the same period last year. This is the first drop in earnings after 18 consecutive quarters of increases. Analysts were expecting a figure of 98 cents per share. Compared to the fourth quarter (5,71 billion, $1,02 per share) profit is up.
Revenue was $21,3 billion, up from $20,6 billion last year but down from $21,4 billion in the fourth quarter. Analysts were expecting a turnover of 21,24 billion. “The solid first quarter results reflect the benefits of a diversified business model,” said Chief Executive Officer John Stumpf, noting that “capital levels remain solid” and that the bank “continues to work to strengthen the relationship with customers ”.
Costs increased 5% to $12,51 billion, from a previous $11,95 billion. Expenses as a percentage of turnover in the first quarter amounted to 58,8%, within the range between 55 and 59% that the bank considers efficient. The mortgage-related businesses, the largest by volume in the United States, brought in fees of $1,55 billion, up 2 percent from $1,51 billion in the same period last year.
The Bank disbursed $49 billion in home loans in the first three months of the year, compared with $36 billion in the same period last year and $44 billion in the fourth quarter. The total value of loans disbursed at the end of the first quarter was $861,23 billion, up 4% from $826,44 billion in the same period last year.
