JPMorgan Chase (JPM) 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.
Revenue for the quarter slipped to $23.9 billion, down 8% compared with the prior year.
The mega bank missed earnings estimates in the first quarter, with its EPS of $1.28 missing by 11 cents and its revenue of $23.9 billion missing by $0.69 billion, according to analysts with Seeking Alpha.
Mortgage production revenue was 76% lower year-over-year, primarily on lower volumes, while originations were down 68% year-over-year and 27% quarter-over-quarter.
In addition, mortgage servicing posted a pretax loss of $270 million, down $169 million year-over-year.
Looking ahead, the bank said to expect mortgage production pretax income to be a loss of approximately $100-150 million in 2Q14, and pretax income to be negative for the full year 2014.
“JPMorgan Chase had a good start to the year, given there were industry-wide headwinds in Markets and Mortgage. Consumer & Community Banking deposit growth and card sales volume both remain above the industry average, and we have made significant progress in Business Banking originations – up 22%,” Jamie Dimon, chairman and CEO, said.
“We have growing confidence in the economy – consumers, corporations and middle market companies are in increasingly good financial shape and housing has turned the corner in most markets – and we are doing our part to support the recovery,” Dimon continued.