JPMorganChase (JPM) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $14.6B ($5.07 per share), up 9% year-over-year, with ROE of 18% and ROTCE of 21%.

• Managed revenue reached $46.0B, up 8% year-over-year, with reported revenue at $45.3B.

• Results included a $588M First Republic-related gain.

• Noninterest expense increased 4% to $23.6B, mainly due to higher compensation, technology, and legal costs, partially offset by an FDIC special assessment accrual release.

• Credit costs totaled $3.3B, with $2.3B in net charge-offs and a $973M net reserve build, reflecting increased downside risk weighting.

Financial highlights

• Net income: $14.6B (+9% YoY); EPS: $5.07 (+14% YoY); ROTCE: 21%; ROE: 18%.

• Managed revenue: $46.0B (+8% YoY); reported revenue: $45.3B (+8% YoY); noninterest revenue: $22.0B (+17% YoY); net interest income: $23.4B (+1% YoY).

• Expenses were $23.6B, up 4% YoY; overhead ratio: 52% reported, 51% managed.

• Markets revenue rose 21% YoY, with record Equities revenue and strong Fixed Income performance.

• Book value per share: $119.24 (+12% YoY); tangible book value per share: $100.36 (+13% YoY).

Outlook and guidance

• FY2025 net interest income expected at ~$94.5B; NII excluding Markets at ~$90B, both market dependent.

• Adjusted expense outlook for 2025 projected at ~$95B.

• Card Services net charge-off rate expected at ~3.6%.

• Management remains cautious amid macroeconomic and geopolitical uncertainty, inflation, and high asset prices.

• Regulatory developments include Texas court vacating CFPB Late Fee Rule and Congress overturning CFPB Overdraft Rule.