JPMorgan Chase\u00a0on Wednesday posted record quarterly and annual earnings and revenue, reinforcing the company\u2019s status as the biggest and most profitable bank in U.S. history.<\/p>\n
Here\u2019s what the company reported:<\/p>\n
The bank said profit rose 50% to $14 billion in the fourth quarter as noninterest expenses fell 7% from a year earlier, when the firm had a $2.9 billion FDIC\u00a0assessment\u00a0tied to regional bank failures.<\/p>\n
Revenue climbed 10% to $43.74 billion, helped by Wall Street operations and better-than-expected net interest income of $23.47 billion, exceeding the StreetAccount estimate by almost $400 million.<\/p>\n
Shares of the bank rose 1.1% in morning trading.<\/p>\n
JPMorgan was already the biggest American bank by assets when it won an auction to\u00a0take over\u00a0First Republic out of Federal Deposit Insurance Corp. receivership in 2023. So while it paid the largest FDIC assessment among its peers a year ago to shore up the deposit insurance fund, it was also a major winner from the regional banking crisis, gaining even more deposits and assets in the tumult.<\/p>\n
Fixed income trading revenue jumped 20% to $5 billion, topping the $4.42 billion StreetAcount estimate on rising credit and currency results. Equities revenue climbed 22% to $2 billion, missing the $2.37 billion estimate and\u00a0underperforming\u00a0the firm\u2019s rivals at\u00a0Goldman Sachs.<\/p>\n
Investment banking fees jumped 49% to $2.48 billion, topping the $2.39 billion estimate.<\/p>\n
CEO\u00a0Jamie Dimon\u00a0said in the release that the economy was \u201cresilient,\u201d buoyed by low unemployment and healthy consumer spending, as well as optimism for the Trump administration\u2019s pro-growth agenda.<\/p>\n
\u201cHowever, two significant risks remain,\u201d Dimon said. \u201cOngoing 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.\u201d<\/p>\n
On a call with reporters, CFO Jeremy Barnum said that net interest income for 2025 would be about $94 billion.<\/p>\n
Banks ended the year with several reasons to be bullish: Wall Street activity has picked up at the same time that Main Street consumers remain resilient, while the election victory of\u00a0Donald Trump\u00a0has led to hopes of regulatory relief.<\/p>\n
While the business is thriving, analysts will likely ask Dimon about his succession planning after his No. 2 executive, Daniel Pinto, said he was\u00a0stepping down\u00a0as chief operating officer in June. Dimon signaled last year that he was likely to step down as CEO within five years.<\/p>\n
Another question is how the changing outlook for Federal Reserve rate cuts will impact the bank across its sweeping operations. While Fed officials expect two more cuts this year, economic indicators could cause them to\u00a0pause.<\/p>\n
Finally, analysts may press JPMorgan on what it intends to do with a possible windfall of capital if Trump regulators present a\u00a0gentler\u00a0version of the Basel 3 Endgame, as potential nominees have supported. Dimon said last May that share buybacks would be muted because the stock\u00a0was expensive, but they\u2019ve only climbed since.<\/p>\n
Besides JPMorgan,\u00a0Goldman Sachs, Wells Fargo and\u00a0Citigroup\u00a0are also out with quarterly and full-year results Wednesday, while\u00a0Bank of America\u00a0and Morgan Stanley are due to report Thursday.<\/p>\n<\/p>\n
JPMorgan Chase\u00a0on Wednesday posted record quarterly and annual earnings and revenue, reinforcing the company\u2019s status as the biggest and most profitable bank in U.S. history. Here\u2019s what the company reported: The bank said profit rose 50% to $14 billion in the fourth quarter as noninterest expenses fell 7% from a year earlier, when the firm […]<\/p>\n","protected":false},"author":0,"featured_media":14051,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-14050","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=14050"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14050\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/14051"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=14050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=14050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=14050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}