JPMorgan Chase Wednesday topped estimates for fourth-quarter revenue and profit, helped by better-than-expected net interest income and fixed-income trading and investment banking results.
Here's what the company said:
- Earnings: $4.81 per share versus LSEG's $4.11 estimate
- Revenue: $43.74 billion vs $41.73 billion expected
The bank said profit rose 50% to $14 billion in the quarter as non-interest expenses fell 7% from a year earlier, when the company had an FDIC charge of $2.9 billion. evaluation linked to regional bank failure.
Revenue climbed 10% to $43.74 billion, helped by Wall Street activity and better-than-expected net interest income of $23.47 billion, beating StreetAccount's estimate by about $400 million.
Both profit and revenue hit records for the fourth quarter and full year 2024, the bank said.
Fixed income trading revenue jumped 20% to $5 billion, topping StreetAcount's $4.42 billion estimate on increased credit and currency results. Equity revenue climbed 22% to $2 billion, missing the $2.37 billion estimate.
Investment banking fees jumped 49% to $2.48 billion, topping estimates of $2.39 billion.
CEO Jamie Dimon he said in the announcement that the economy was “stable,” buoyed by low unemployment and healthy consumer spending, as well as optimism for the Trump administration's growth agenda.
“However, there are still two big risks,” Dimon said. “Continued and future spending requirements may be at the rate of inflation, and therefore, inflation may persist for some time. In addition, geopolitical conditions remain the most dangerous and complex since World War II. a wide range of situations.”
In a call with reporters, CFO Jeremy Barnum said net interest income for 2025 would be around $94 billion.
Banks ended the year with several reasons to be optimistic: Wall Street activity has picked up at the same time that Main Street consumers remain resilient, and Donald Trump's election victory has led to hopes of 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 was graduating 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 changing outlook for Federal Reserve rate cuts will affect the bank over its clearing operations. While Fed officials expect two more cuts this year, economic indicators could force them to stop.
Finally, analysts can press JPMorgan about what it plans to do with potential compensation if Trump's regulators show up sweeter version of the Basel 3 Schedule, as the nominees have supported. Dimon said last May that the share buyback would be suspended because the stock was expensivebut they have not increased since.
In addition to JPMorgan, Goldman SachsWells Fargo and Citigroup also out with quarterly and full-year results on Wednesday, while Bank of America and Morgan Stanley to report on Thursday.
This story is developing. Please check back for updates.
