Thursday marked the first wave of the big banks’ quarterly earnings.
Wells Fargo & Co (NYSE:WFC), Citigroup Inc (NYSE:C) and JP Morgan Chase & Co. (NYSE:JPM) all reported their earnings today. Among them, JPM is clearly leading the pack with its solid first quarter earnings.
J.P. Morgan reported earnings of $1.65 per share, beating the Zacks Consensus Estimate of $1.51 per share. Revenues, however, fell short of expectations coming in at $24.67 billion.
However, a company’s earnings report is much more than just these numbers, especially from one of the giants of the banking industry.
Here are three key takeaways from J.P. Morgan’s Q1 earnings:
JPM’s Mobile Banking Grows
The company reported having a 14% growth of active mobile users to 27.3 million.
Just like almost all the other industry, banking has adopted mobile options to keep up with the demand of today’s highly mobile digital society.
Having a mobile banking app that works reliably and simply is more important ever as the number of consumers using mobile apps as the number is climbing fast.
The use of mobile banking is projected to reach 25% of the global population by 2019, according to research by KPMG and UBS. Furthermore, the PEW Charitable Trusts found in a study that 46% of the U.S. population uses mobile payment app to shop, pay bills and send or receive money.
Having a reliable mobile app not only makes depositing checks easy and quick, but it also creates customer loyalty, according to a report by Bain.
JPM’s Consumer Business is Healthy
“U.S. consumers and business are healthy overall, and with pro-growth initiatives and improving collaborations between government and business, the U.S. economy can continue to improve,” said J.P. Morgan CEO Jamie Dimon.
The numbers are there to back up Dimon’s statement. In the first-quarter, the company had $622.9 billion in deposits, increased 11% year-over-year.
Also, the net revenue of J.P. Morgan’s Consumer & Business Bank division was $4.9 billion, up 8% from a year ago.