JPMorgan Chase & Co. News Release
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In the discussion below of Firmwide results of JPMorgan Chase & Co. ("JPMorgan Chase" or the "Firm"), information is presented on a managed basis, which is a non-GAAP financial measure. The discussion below of the Firm's business segments is also presented on a managed basis. For more information about managed basis, and non-GAAP financial measures and key performance measures used by management to evaluate the performance of each line of business, see page 5. Comparisons noted in the sections below are calculated for the fourth quarter of 2017 versus the prior-year fourth quarter, unless otherwise specified.
JPMORGAN CHASE (JPM) Net revenue on a reported basis totaled $24.2 billion, $25.3 billion, and $23.4 billion for the fourth quarter of 2017, third quarter of 2017, and fourth quarter of 2016, respectively. Results for JPM 3Q17 4Q16 ($ millions, except per share data) 4Q17 3Q17 4Q16 $ O/(U) O/(U) % $ O/(U) O/(U) % Net revenue - managed $ 25,450 $ 26,200 $ 24,333 $ (750) (3)% $ 1,117 5% Noninterest expense 14,591 14,318 13,833 273 2 758 5 Provision for credit losses 1,308 1,452 864 (144) (10) 444 51 Net income $ 4,232 $ 6,732 $ 6,727 $ (2,500) (37)% $ (2,495) (37)% Earnings per share $ 1.07 $ 1.76 $ 1.71 $ (0.69) (39)% $ (0.64) (37)% Return on common equity 7% 11% 11% Return on tangible common equity 8 13 14 Discussion of Results: Net income was $4.2 billion, a decrease of 37% driven by a $2.4 billion impact as a result of the enactment in the fourth quarter of 2017 of the Tax Cuts and Jobs Act ("TCJA"). Excluding the impact of the TCJA, net income would have been $6.7 billion, down 1%. Net revenue was $25.5 billion, up 5%. Net interest income was $13.4 billion, up 11%, driven by the net impact of rising rates, as well as loan and deposit growth, partially offset by declines in Markets net interest income. Noninterest revenue was $12.1 billion, down 1%, driven by lower Markets revenue, largely offset by growth in auto lease revenue in Consumer & Community Banking and growth in Asset & Wealth Management. Noninterest expense was $14.6 billion, up 5%, driven by higher compensation expense, higher contribution to the Firm's Foundation, higher auto lease depreciation and impairment of certain leased equipment in the Commercial Bank, partially offset by lower legal expense. The provision for credit losses was $1.3 billion, up from $864 million in the prior year. The increase reflected modest net reserve builds in the current quarter of $28 million and $16 million in the Wholesale and Consumer portfolios, respectively, versus net reserve releases in the prior year of $169 million and $247 million in the Wholesale and Consumer portfolios, respectively.
CONSUMER & COMMUNITY BANKING (CCB)
Results for CCB 3Q17 4Q16 ($ millions) 4Q17 3Q17 4Q16 $ O/(U) O/(U) % $ O/(U) O/(U) % Net revenue $ 12,070 $ 12,033 $ 11,019 $ 37 -% $ 1,051 10% Consumer & Business Banking 5,557 5,408 4,774 149 3 783 16 Home Lending8 1,442 1,558 1,690 (116) (7) (248) (15) Card, Merchant Services & Auto9 5,071 5,067 4,555 4 - 516 11 Noninterest expense 6,672 6,495 6,303 177 3 369 6 Provision for credit losses 1,231 1,517 949 (286) (19) 282 30 Net income $ 2,631 $ 2,553 $ 2,364 $ 78 3% $ 267 11%

JPMorgan Chase & Co. published this content on 12 January 2018 and is solely responsible for the information contained herein.
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