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JPMorgan Chase originations tumble 66% from 2013

Posts $6B 2Q net income, beats estimates

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JPMorgan Chase (JPM) posted second-quarter net income of $6 billion, compared with net income of $6.5 billion in the second quarter of 2013, with earnings per share at $1.46, compared with $1.60 in the second quarter of 2013.

Revenue for the quarter dipped to $25.3 billion, slightly down 2% compared with the prior year.

EPS beat estimates by $0.04, while revenue beat estimates by $1.54 billion, according to Seeking Alpha.  

Furthermore, mortgage originations came in at $16.8 billion, significantly down 66% from the prior year and 1% from the prior quarter.

Mortgage banking net income fell to $709 million, a decrease of $433 million from the prior year, driven by lower net revenue and a lower benefit from the provision for credit losses, partially offset by lower noninterest expense.

However, mortgage application volumes were $30.1 billion, down 54% from the prior year but up 15% from the prior quarter.

But this is not a huge surprise, with FBR Capital Markets Managing Director Paul Miller explaining that the market is just not getting solid loan growth. He estimated that JPMorgan and Goldman Sachs would fall in line with Wells Fargo (WFC) and Citigroup (C

“Despite continued industry-wide headwinds in markets and mortgage, the firm has continued to deliver strong underlying performance. Consumer & Community Banking deposit growth and card sales volume both outpaced the industry, and we had record loan originations in Business Banking,” Jamie Dimon, Chairman and CEO, said.

Last quarter, JPMorgan recorded a first-quarter 2014 net income of $5.3 billion, or $1.28 per share, a drop from $6.5 billion, or $1.59 per share, in the first quarter of 2013.

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