JPMorgan: Strong Q1 Results, Raised FY23 Outlook, Still 10.6x P/E

Company Update (JPM US) (Buy)

Highlights

• JPM delivered strong Q1 2023 results and raised its full-year outlook

• Net Interest Income grew 49% year-on-year; ROTCE was 23%

• JPM deposit gains after the SVB crisis had little benefit on the P&L

• Shares now have a 1.8x P/TBV, a 10.6x P/E and a 2.9% Dividend Yield

• We expect a total return of 63% (20.4% p.a.) by 2025 year-end. Buy

Introduction

We review our Buy rating on JPMorgan Chase (“JPM”) after Q1 2023 results on Friday (April 14).

We have followed bank stocks for over a decade and have been publishing our research on JPM (as well as on other banks) publicly since 2019. Our current Buy rating on JPM originated from an upgrade in April 2022, and shares have gained 12.4% (including dividends) in the 12 months since, outperforming the S&P 500 by about 6 ppt:

JPM Share Price (Last 1 Year)

Source: Google Finance (14-Apr-23).

JPM delivered a strong Q1 2023 with a Return on Tangible Common Equity (“ROTCE”) of 23%, and full-year 2023 Net Interest Income outlook was raised significantly. Pe…