JPMorgan Chase kicked off the profits season for banks late final week with a far stronger-than-predicted performance for the first quarter. The most prominent U.S. Financial institution pronounced substantial gains across most of its operating divisions, which helped sales bounce to a file $29.1 billion for the region (properly beforehand of the consensus estimate of $28.1 billion), at the same time as income for the sector also jumped to an all-time excessive of $2.
Sixty-five in comparison to the consensus determination of $2.32. Notably, JPMorgan completed these strong outcomes in spite of a visibly susceptible performance by its buying and selling desks. This highlights the advantages of its different commercial enterprise model, which has a dominant presence in retail banking, funding banking, business banking, custody banking, in addition to asset & wealth management services.
The bank’s sturdy Q1 displaying reinforces our perception that its EPS determined for full-12 months 2019 will reach $10.00, as detailed within the Trefis valuation dashboard for JPMorgan. Taken together with a forward P/E a couple of-of 12 for the different banking giant, this points to a $120 charge estimate for JPMorgan’s stock, which is more or less 10% beforehand of the present-day percentage fee. We element the important thing factors that drove JPMorgan’s outcomes in Q1 2019, alongside the likely fashion for full-year 2019 in the sections underneath.