On Friday, Wells Fargo and JPMorgan Chase released their respective Q1 2019 earnings, with both banks exceeding expectations. Wells Fargo & Company reported a net income of $5.9 billion, while JPMorgan Chase reported $9.2 billion in net income. Jamie Dimon, Chairman and CEO of JPMorgan Chase, commented on the bank’s earnings.
“In the first quarter of 2019, we had record revenue and net income, strong performance across each of our major businesses and a more constructive environment,” said Dimon in a statement. “Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong.”
JPMorgan Chase’s home lending net revenue was $1.3 billion, up from the previous quarter by down 11% year over year, driven by lower net servicing revenue.
At Wells Fargo, interim CEO Allen Parker, who is taking over for Tim Sloan following his announcement retirement, commented on the improvements Wells Fargo has made.
“Since assuming this role, I have been focused on leading our Company forward by emphasizing my top priorities: serving our customers and supporting our Wells Fargo team members; meeting and exceeding the expectations of our regulators; and continuing the important transformation of the Company,” said Parker in a statement. “We have more work ahead of us, and our strong leadership team is dedicated to making our Company the most customer-focused, efficient, and innovative Wells Fargo ever. All these efforts are focused on creating a first-rate organization that is characterized by a strong financial foundation, a leading presence in our chosen markets, focused growth within a responsible risk management framework, operational excellence, and highly engaged team members.”
Wells Fargo’s mortgage banking income was $708 million, up from $467 million in fourth quarter 2018, and the production margin on residential held-for-sale mortgage loan originations increased to 1.05%, from 0.89% in the fourth quarter. In Q1 2019, Wells Fargo’s residential mortgage loan originations were $33 billion, down from $38 billion in Q4 2018.