JPMorgan Chase & Co. reported record net income of $6.5 billion for the first quarter of 2013, compared with net income of $4.9 billion in the first quarter a year ago.
Revenue1 for the quarter was $25.8 billion, compared with $26.8 billion in the prior year.
As previously announced, the board intends o increase the second-quarter common stock dividend to $0.38 per share from the current $0.30 per share, returning the dividend to its highest level. The board has also authorized the company to repurchase $6 billion of stock.
As one of the so-called “too big to fail banks,” the Federal Reserve asked J.P. Morgan Chase to submit by the end of the third quarter an additional capital plan addressing the weaknesses it identified in the capital planning processes. The company plans to fully address their requirements.
JPMorgan Chase seems to have weathered the so-called “London Whale” trading losses with little damage. The losses on trading of financial instruments called into question the supervision over trading activities that can trigger sizable losses.
The company reported Card, Merchant Services & Auto unit net income was $1.3 billion, an increase of $89 million, or 8 percent, compared with the prior year.
Chase Card Services is based in Wilmington.
First quarter revenue in the card, merchant and auto area, was $4.7 billion, flat compared with the prior year. Net interest income was $3.5 billion, flat compared with the prior year. The impact of lower average credit card loan balances was offset by lower revenue reversals associated with lower net charge-offs for credit card loan losses.
Credit Card average loans were $123.6 billion, down 3% from prior year and 1 percent from the prior quarter. Chase is the No. 1 credit card issuer in the U.S. based on outstanding balances.
