JPMorgan Posts Better-than-Expected Results

JPMorgan (JPM) reported Thursday that the firms’s Q1’09 net income came in at $2.1 billion, compared with net income of $2.4 billion in the first quarter of 2008. Earnings per share were $0.40, compared with $0.67 in the first quarter of 2008.

From JPM: Jamie Dimon, JP’s CEO, commented: “The firm earned more than $2 billion this quarter, despite extremely high credit costs of $10 billion (including $4 billion added to reserves), largely in Card Services and Retail Financial Services. Importantly, we generated record firmwide revenue; record revenue and net income in the Investment Bank; and benefited from underlying growth in Retail Banking, including increased deposits and checking accounts, higher mortgage refinancing volumes and excellent progress on the Washington Mutual integration. We also continued to see solid volumes and earnings across Commercial Banking, Treasury & Securities Services and Asset Management.”

JP Morgan’s Net revenue was a record $8.3 billion, an increase of $5.3 billion from the prior year. Investment banking fees were $1.4 billion, up 14% Y/Y. Fixed Income Markets revenue was a record $4.9 billion, compared with $466 million in the prior year. The increase was driven by record results in credit trading, emerging markets and rates.

Looking ahead to the rest of 2009, Dimon said: “It is reasonable to expect additional increases to credit reserves if the economic environment worsens. Yet, we are confident that even a highly adverse economic scenario would not compromise our overall strength and stability – or our ability to enhance our franchises. We remain well-positioned to benefit when the economy recovers and remain committed to serving our clients, investing in our franchise and building a stronger company for the future.”

Worth noting is that Morgan’s positive reporting was partly fueled by pieces of the old Bear Stearns Cos. purchased by JPM 13 months ago at $10/share: “We really don’t talk about this a lot but the Bear Stearns equity business was very strong,” Dimon said during his CC on Thursday.

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