JPMorgan shares see uptrend after winning First Republic auction

JPMorgan Chase (JPM) shares rose 3% in early premarket trade

JPM shares saw a 3% surge following their win in First Republic auction.

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JPMorgan expects the deal to be earnings per share accretive, generating more than $500 million of incremental net income per year.

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The $500 million does not include a one-time gain of $2.6 billion and an estimated $2 billion of restructuring costs.

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Despite neither the FDIC nor JPMorgan release indicating shareholders would get any consideration, First Republic shares (FRC) fell 36% to $2.24.

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JPMorgan confirmed that it is not assuming First Republic's corporate debt or preferred stock.

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PNC Financial Services (PNC), reported to be one of the First Republic bidders, fell 5% in shares.

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This deal marks an important milestone for JPMorgan Chase as it expands its market share in the banking sector.

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