JP Morgan Chase Wednesday posted record quarterly and annual revenue and earnings, reinforcing the company’s status as the largest and most profitable bank in U.S. history.
Here’s what the company reported:
- Income: $4.81 per share vs $4.11 LSEG estimate
- Income: $43.74 billion vs. $41.73 billion expected
The bank said profit rose 50 percent to $14 billion in the fourth quarter as noninterest expenses fell 7 percent from a year ago, when the firm had an FDIC charge of $2.9 billion. Assessment Associated with regional bank failures.
Revenue rose 10% to $43.74 billion, helped by Wall Street operations and expected net interest income of $23.47 billion, about $400 million above StreetAccount estimates.
The bank’s shares rose 1.1 percent in morning trade.
JP Morgan was already the largest US bank by assets when it won the auction. Take over First Republic out of Federal Deposit Insurance Corporation receivership in 2023. So when it paid the largest FDIC assessment among its peers a year ago to boost the deposit insurance fund, it was also a big winner from the regional banking crisis, and benefited even more. Deposits and assets in turmoil.
Fixed income trading revenue jumped 20% to $5 billion, topping the $4.42 billion StreetAcount estimate on rising credit and currency results. Equities revenue rose 22 percent to $2 billion, missing estimates of $2.37 billion and Underperforming But the firm’s competitors Goldman Sachs.
Investment banking fees rose 49 percent to $2.48 billion, topping estimates of $2.39 billion.
CEO Jamie Damon The release said the economy was “resilient,” with low unemployment and healthy consumer spending, along with optimism for the Trump administration’s pro-growth agenda.
“However, two significant risks remain,” Dimon said. “Ongoing and future spending requirements will likely be inflationary, and therefore, inflation may persist for some time. Furthermore, geopolitical conditions are the most dangerous and complex since World War II. As always, we hope for the best but prepare the firm for a wide range of scenarios.
On a call with reporters, CFO Jeremy Barnum said net interest income for 2025 will be about $94 billion.
Banks ended the year with a number of reasons to be bullish: Wall Street activity picked up even as Main Street consumers remained resilient, while election wins Donald Trump This has raised hopes for regulatory relief.
While the business is booming, analysts are likely to ask Dimon about his succession planning after his No. 2 executive, Daniel Pinto, said he step down As Chief Operating Officer in June. Dimon indicated last year that he was likely to step down as CEO within five years.
Another question is how the Federal Reserve’s changing approach to rate cuts will affect the bank’s broader operations. While Fed officials expect two more cuts this year, economic indicators could trigger them. pause.
Finally, analysts may press JPMorgan on what it wants to do with potential capital losses if Trump offers regulators. soft Version of Basel 3 Endgame, as contributed by potential nominees. Dimon said last May that the share buyback would be muted as the stock It was expensivebut they have only climbed since then.
Apart from JP Morgan, Goldman SachsWells Fargo and Citigroup Quarterly and full-year results are also out on Wednesday. Bank of America And Morgan Stanley is due to report on Thursday.