JP Morgan Conference Call Highlights

JP Morgan

reported its third quarter earnings on Tuesday. Shares of the company are down one percent. Below are some key highlights from its conference call: • With net income of $5.6 billion on strong revenue of over $25 billion, up 5% year-on-year reflecting growth across most of our businesses. • An EPS of $1.36. • The quarter was characterized by continued strength in our leadership positions as well as market share gains. • Core loan growth for the quarter was strong, up 7% year-on-year while maintaining strong discipline across the board and with encouraging trends in consumer. • Returning approximately $3 billion of capital to shareholders this quarter, with growth share repurchases of $1.5 billion. • On credit, despite lower reserve releases, firm wide credit costs remain very low, driven by reduced net charge-offs. • We expect total net charge-offs for 2014 to be less than $5 billion • The firm reported a fully phased in advanced CET1 ratio of 10.1%, up from 9.8 last quarter reaching our year end target of 10% plus. • The combined consumer businesses generated $2.5 billion of net income for the quarter on $11.3 billion of revenue and an ROE of 19%. • We are seeing continued strong growth in the underlying business drivers, average deposits in up $35 billion year-on-year. • Our active mobile consumer basis base is up 22%, and credit card sales volume of $120 billion was up 12% on strong new account originations. • Card and Merchant Services revenue increased 7% from the prior year • We've added approximately 500 new clients in targeted industries. • An excellent quarter in Asset Management with record net income of $572 million up 20% year-on-year and 4% quarter on quarter. • JPMorgan and certain others in the financial services industry, experienced cyber-attacks this quarter. • We are taking every step to protect our customers and our firm, but these attacks highlight the need for continued and increased cooperation. • Consumer & Business Banking, CCB generated net income of $914 million, up 20% year-on-year. • Average deposits of $476 billion were up 9%. • Net interest income was up 4% year-on-year • And non-interest revenue was up 6% with investment revenue growth driven by Chase private clients and with the addition of over 700,000 households driving stronger fee income. • The momentum that we've seen in recent quarters continued and we believe we've outperformed the industry with loan originations for the quarter of $1.6 billion, up 27% year-on-year. • Overall, we saw strong and stable revenue of $4.6 billion flat year-on-year. Loan growth. • Strong sales volume was offset by spread compression and higher amortization of customer acquisition costs. • In Merchant Services volume was up 15% year-on-year driven by continued strong sales performance a transaction growth was up 6% year-on-year, lagging sales growth. • Total services revenue was $1 billion in line with our guidance • Lending revenue was down approximately $200 million year-on-year • Our tax rate for the quarter was 28%, broadly in line with a normalized tax rate of 30%, plus or minus