JP Morgan reported Q1 earnings this morning. Q1 EPS was $4.32 vs. $3.41 expected. Q1 Revenue was $39.34 billion vs. $36.19 billion expected, a 24% increase YoY. Net interest income was $20.8 billion, a 50% increase YoY. JPM’s deposits were declining quarter over quarter in 2022 but went back up in Q1, perhaps due to the banking crisis. Deposits went from $2.56 trillion in Q1 2022 and $2.34 trillion in Q4 2022 to $2.37 trillion in Q1 2023. Their payment business also grew significantly. The payment revenue grew 26% YoY, from $1.9B in Q1 2022 to $2.4B in Q1 2023.
Overall, it was a good quarter for JP Morgan Chase. But since the banking crisis happened in mid-March, the full effect was probably not reflected in their financials yet. My mother-in-law just told me she got a 5-month CD from Chase at 4%. This tells us how much things have changed since the banking crisis that even Chase is paying a decent interest on our deposits, which is quite a shocker. We will see if their net interest margin shrinks in the coming quarters. One thing we can be sure of is that free deposits are over for banks. Things are going to get more difficult for them as banks deal with the long-duration assets held on their books while having to pay significant interest on customer deposits.
Great quarter for sure!
Was surprised to see them have deposit outflows. I had been under the impression the large banks where getting inflow from the smaller ones. Wfc also had deposit outflows as well.