JPMorgan Chase beats by $0.72, beats on revs
- Reports Q4 (Dec) earnings of $4.81 per share, excluding non-recurring items, $0.72 better than the FactSet Consensus of $4.09; reported revenues rose 10.9% year/year to $42.77 bln vs the $41.9 bln FactSet Consensus.
- Net interest income excluding Markets was $23.0 billion, down 2%, driven by lower rates and deposit margin compression across the lines of business, as well as lower deposit balances in CCB. This was largely offset by the impact of balance sheet actions, primarily securities reinvestment, as well as higher revolving balances in Card Services and higher wholesale deposit balances.
- Noninterest revenue excluding Markets was $13.7 billion, up 30%, largely driven by higher asset management fees in AWM and CCB, higher investment banking fees and lower net investment securities losses compared to the prior year. Markets revenue was $7.0 billion, up 21%.
- The provision for credit losses was $2.6 billion, reflecting net charge-offs of $2.4 billion and a net reserve build of $267 million. Net charge-offs of $2.4 billion were up $200 million, primarily driven by Card Services. The net reserve build included a $572 million net build in Consumer, predominantly in Card Services, and a $282 million net release in Wholesale. The prior-year provision was $2.8 billion, reflecting net charge-offs of $2.2 billion and a net reserve build of $598 million.
- Jamie Dimon, Chairman and CEO, commented: "The Firm concluded the year with a strong fourth quarter, generating net income of $14.0 billion." Dimon continued: "Each line of business posted solid results. In the CIB, clients were active, with IB fees up 49%, and Markets revenue rose 21%. Additionally, Payments fees grew by double digits for the fourth consecutive quarter, helping drive Payments revenue to a record $18.1 billion for the year. In CCB, we continued to acquire new customers across Consumer Banking, Business Banking, Card and wealth management. For example, nearly 2 million net new checking accounts were opened during 2024. Finally, in AWM, management fees rose 21%, and revenue hit a record $5.8 billion. More impressively, client asset net inflows totaled $486 billion in 2024, bringing cumulative net inflows over the past two years to $976 billion." Dimon added: "Regarding regulation, we have consistently said that regulation should be designed to effectively balance promoting economic growth and maintaining a safe and sound banking system. It is possible to achieve both goals. This is not about weakening regulation — we maintain a fortress balance sheet, evidenced by $547 billion of total loss-absorbing capacity and $1.4 trillion of cash and marketable securities — but rather about setting rules that are transparent, fair, holistic in their approach and based on rigorous data analysis, so that banks can play their critical role in the economy and markets." Dimon added: "The U.S. economy has been resilient. Unemployment remains relatively low, and consumer spending stayed healthy, including during the holiday season. Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business. However, two significant risks remain. Ongoing and future spending requirements will likely be inflationary, and therefore, inflation may persist for some time. Additionally, geopolitical conditions remain the most dangerous and complicated since World War II. As always, we hope for the best but prepare the Firm for a wide range of scenarios."