JPMorgan Chase & Co
JPMQ1 2013 Earnings Call Transcript
Operator: Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's First Quarter 2013 Earnings Call. This call is being recorded. Your line will be muted for the duration of the call. We will now go live to the presentation. Please standby.
At this time, I would like to turn the call over to JPMorgan Chase's Chairman and CEO, Jamie Dimon; and Chief Financial Officer, Marianne Lake.
Ms. Lake, please go ahead.
Marianne Lake - CFO: Thank you. Good morning, everyone. I am going to take you through the presentation, which is available on our website. Please refer to the disclaimer regarding forward-looking statements at the back of the presentation.
So if you turn to Page 1, a very strong start to the year with record net income of $6.5 billion for the first quarter and record EPS of $1.59 a share and revenue of $25.8 billion and a return on tangible common equity of 17% for the quarter. You can see on Page 1, we've highlighted upfront two significant items, $650 million reserve release in mortgage and a $500 million reserve release in card, and as I go through the presentation, I'll also be highlighting for you a number of smaller items some positive and some negative.
We continue to maintain the leadership positions we highlighted at Investor Day. Number one, ATM network, number two branch network, number two mortgage originator, number one credit card issuer in the U.S. and number one ranking in Global IB fees and we are on track to deliver against our expense target for the year. On a reported basis, total loans for the Company were up 1% with core loan growth excluding one-offs up 5%.
Favorable credit performance continued in our wholesale and core consumer portfolio, with low level of delinquencies and charge-offs. As the housing market recovers, losses in the real estate portfolio continue to improve and this quarter we saw 30 plus delinquencies declined by 14% and severities improve.
So, if you turn to Page 3 for a brief capital update. We ended the quarter with Basel 1 and Basel 3 Tier 1 common at a $143 billion and $146 billion respectively, both up from last quarter. Our Basel 1 ratio is 10.2%, which reflects the impact of new market risk rules that went into effect in January and this 10.2% compares to ratio of 9.9% the last quarter as measured on the same basis. Our Basel 3 ratio of 8.9% is up from 8.7% last quarter and reflects the full impact of the rules as we understand them. As you know we don't pull forward the impact of passive run off or model enhancements, which we expect to deliver around 100 basis points of benefit this year and next. We still expect to meet our Basel 3 Tier 1 common target of 9.5% by the end of this year including the capacity to continue share repurchases. We've also made progress this quarter and are on track for full LCR compliance this year.
So in the bullet at the bottom of the page, the bullet intends to increase the quarterly dividend to $0.38 a share effective in the second quarter. We repurchased $2.6 billion of common equity in the first quarter with authorization to repurchase an additional $6 billion over the next four quarters.
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