CREDIT SUISSE: JPMorgan set 'a high bar' for banks with its latest earnings report (JPM)

JPMorganraised the bar for the financial sector with its first-quarter earnings report.On April 13, the bank reported first-quarternet income of $6.4 billion, or $1.65 ashare.Additionally, it wasa record-setting quarter for the firm's investment banking business.Markets and investor services revenue, at $6.5 billion, were up 13% year-on-year, with the fixed income, currencies, and commodities business enjoying a strong start to the year.According to a group of equity analysts led by Susan Roth Katzke at Credit Suisse, JMorgan's performance exceeded expectations. The Credit Suisse team said JPMorgan was "setting a high bar for the bank group," pointing out thatthe reported EPS of $1.65 per share was above Credit Suisse's estimate of $1.45 per share and a Wall Street consensus of$1.52 per share."Upside was largely revenue-driven; efficiency ratio and aggregate credit costs were in line," the bank said.In light of JPMorgan's solid performance, Credit Suisse has increasedits earnings per share estimates for the second quarter to $1.58 and for the third quarter to $1.75. Credit Suisse kept its price target for JPMorgan at $99 per share, above the firm'scurrent market price of $84.99.Credit Suisse expects the firm to farewell in the current market environment relative to its peers. The bank said:"JPMorgan remains positioned to make the most of the current environment, and any upside. In terms of forward guidance' market-related activity remains healthy with a solid investment banking pipeline; full year NII guide is now +$4.5bn reflecting the March rate hike and the implied forward curve (already factored in to our estimates), adjusted expense ($58bn) and net charge-off (~$5bn) guides are unchanged."SEE ALSO:JPMorgan beats, investment bank has a record quarterJoin the conversation about this storyNOW WATCH: The disturbing reason some people turn red when they drink alcohol
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