JPMorgan Earnings Beat Estimates on Mortgage Lending Gains
Bloomberg said that JPMorgan Chase reported a 3.1% drop in earnings, a smaller decline than analysts estimated as mortgage revenue surged and trading almost doubled from the fourth quarter.
Bloomberg noted that first-quarter net income fell to $5.38 billion, or $1.31 a share, from a record $5.56 billion, or $1.28, in the same period a year earlier when there were more shares outstanding. Per-share profit compared with an average estimate of $1.17 from 28 analysts surveyed by Bloomberg.
Bloomberg said that mortgage fees and related revenue totaled $2 billion, compared with a loss of $489 million a year earlier.
Quoting JPMorgan’s CEO Jamie Dimon, Bloomberg said, “We expect to see elevated levels of costs and losses associated with mortgage-related issues for a while longer.” Bloomberg noted that the bank set aside $2.5 billion more toward its litigation costs during the first quarter mostly for mortgage-related lawsuits.
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