JPMorgan posted results on Friday (Oct. 12) that beat the Street on headline numbers – top and bottom – based on traction in consumer spending, and also showed growth in its mobile and digital initiatives.
The bank is among a trio, including Citigroup and Wells Fargo, that typically kick off earnings season.
According to reports, the company said that average core loans were up 6 percent year on year, a tally that excludes corporate and investment banking activity. Loans during the period came to just under $425 billion. Drilling down a bit, card loans were $147 billion, up 5 percent year on year to $147.9 billion, a 2 percent gain. In reference to the consumer, too, consumer and community banking revenues were up 1 percent to $13.3 billion.
In terms of headline results, earnings of $2.34 were eight cents higher than consensus. The total revenues were up 5 percent to $27.8 billion, better than $27.5 billion expected.
Overall, digital customers grew by 5 percent to 48.6 million in the latest quarter year over year. That was outpaced by mobile customers, which grew by 11 percent over the same timeframe, and at the end of the latest period was 32.5 million in the aggregate.
As for the health of the consumer, the provision for credit losses was $948 million in the quarter, from $1.2 billion in the second quarter (so this is a sequential decline); it is also down from $1.5 billion last year. The decline comes amid a release in reserves, after a period of building reserves last year.
Supplemental materials released by the company show that card spending – excluding commercial cards – was up 12 percent to $176 billion in terms of sales volume. New account openings were flat at 1.9 million. Also germane to consumer spending, auto loan and lease origination volume was down 8 percent to $8.1 billion.