Jamie Dimon, President and CEO of JPMorgan Chase, speaking on CNBC’s “Squawk Box” on the World Economic Forum Annual Meeting in Davos, Switzerland, on Jan. 17, 2024.
Adam Galici | CNBC
JPMorgan Chase on Friday posted profit and revenue that topped expectations as trading revenue and credit costs got here in higher than expected.
Here’s what the corporate reported:
- Earnings: $4.44 per share, vs $4.11 estimate from analysts surveyed by LSEG
- Revenue: $42.55 billion, vs. expected $41.85 billion
The bank said first quarter profit rose 6% to $13.42 billion, or $4.44 per share, from a yr earlier, boosted by its takeover last yr of First Republic through the regional banking crisis. Revenue rose 8% to $42.55 billion because the bank generated more interest income due to higher rates and bigger loan balances.
JPMorgan posted a $1.88 billion provision for credit losses within the quarter, far below the $2.7 billion expected by analysts. The primary quarter provision was 17% smaller than a yr ago, because the firm released some reserves for loan losses, relatively than constructing them as they did a yr earlier.
While trading revenue overall was down 5% from a yr earlier, fixed income and equities results topped analysts’ expectations by greater than $100 million each, coming in at $5.3 billion and $2.7 billion, respectively.
While the most important U.S. bank by assets has navigated the speed environment well because the Federal Reserve began raising rates two years ago, smaller peers have seen their profits squeezed.
The industry has been forced to pay up for deposits as customers shift money into higher-yielding instruments, squeezing margins. Concern can be mounting over rising losses from industrial loans, especially on office buildings and multifamily dwellings, and better defaults on bank cards.
Still, large banks are expected to outperform smaller ones this quarter, and expectations for JPMorgan are high. Analysts consider the bank can boost guidance for 2024 net interest income because the Federal Reserve is forced to take care of rate of interest levels amid stubborn inflation data.
Analysts may even wish to hear what CEO Jamie Dimon has to say concerning the economy and the industry’s efforts to keep off against efforts to cap bank card and overdraft fees.
Wall Street may provide some help this quarter, with investment banking fees for the industry up 11% from a yr earlier, based on Dealogic.
Shares of JPMorgan have jumped 15% this yr, outperforming the three.9% gain of the KBW Bank Index.
Wells Fargo and Citigroup are scheduled to release results later Friday, while Goldman Sachs, Bank of America and Morgan Stanley report next week. Â
This story is developing. Please check back for updates.
