JPMorganChase (JPM) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $18.1B ($6.12/share), up 25% year-over-year; excluding significant items, net income was $13.1B ($4.40/share).

• ROTCE was 28% (20% excluding significant items); ROE was 23%.

• Managed revenue reached $51.0B, up 20% year-over-year; reported revenue was $50.2B.

• Significant items included a $7.9B net gain from Visa shares and a $1.0B foundation contribution of Visa stock.

• $4.9B in common stock net repurchases and a common dividend of $1.15/share, with a planned increase to $1.25/share in Q3 2024.

Financial highlights

• Net interest income was $22.9B, up 4% year-over-year; noninterest revenue was $28.1B, up 37%.

• Expenses were $23.7B, up 14% year-over-year; excluding the $1.0B donation, up 9%.

• Credit costs were $3.1B, with net charge-offs of $2.2B and a net reserve build of $821M.

• Average loans grew 6% YoY to $1.3T; average deposits were $2.4T, down 1% YoY.

• Book value per share was $111.29, up 13%; tangible book value per share was $92.77, up 16%.

Outlook and guidance

• 2024 guidance unchanged: NII and NII ex Markets expected at ~$91B, adjusted expense ~$92B, card net charge-off rate ~3.4%.

• Management remains cautious on inflation, interest rates, and geopolitical risks, expecting potential for higher rates and persistent inflation.

• Cautiously optimistic on IB pipeline; refinancing activity a key contributor to H1 performance.