JPMorgan Chase delivered a solid QQ1 2024 with net income of $13.419 billion and ROTCE of 21%, supported by a diversified earnings mix across the Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), and Asset & Wealth Management (AWM) segments. Excluding First Republic, revenue rose 4% year over year to $40.9 billion, while First Republic contributed an additional $1.7 billion of revenue and $668 million of net income, underscoring the quarter‑over‑quarter lift in scale and franchise breadth. Operating leverage and fee growth, notably Investment Banking (IB) fees up 18% YoY and asset management inflows, helped offset higher FDIC assessments and compensation costs. Management emphasized that this is the last quarter in which First Republic results will be shown separately, aiding comparability going forward.
Balance sheet strength remains a core asset. JPM reported a CET1 ratio of 15%, broadly flat versus the prior quarter, with higher risk-weighted assets (RWA) driven by seasonal activity and deferred tax assets, partially offset by lower Card loans. Management signaled a continued focus on capital deployment, stating excess capital is earnings “in store,” and outlined a disciplined approach to dividends and buybacks in the context of Basel III endgame considerations. The bank signaled a path toward NII normalization, with targeted NII guidance for 2024 and a focus on deposit migration dynamics and product pricing as key drivers.
Looking ahead, the firm maintained a conservative but constructive outlook. NII ex Markets is guided to approximately $89 billion for 2024, with total NII near $90 billion. The guidance reflects ongoing balance sheet mix effects, deposit pricing dynamics, and a forward curve embedded with rate cuts. Management emphasized that deposits are expected to be flat to modestly down, while card loan growth remains a meaningful driver of reserves. The company also highlighted 2024 Card net charge-offs expected to stay below 3.5%. In sum, JPM’s QQ1 performance reinforces its resilience, large scale, and capital flexibility, positioning it to navigate a range of macro and regulatory scenarios while returning capital to shareholders.