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JPMorgan Chase on Wednesday posted record quarterly and annual earnings and revenue, reinforcing the company’s status as the largest and most profitable bank in US history.
Here’s what the company said:
- Earnings: $4.81 a share vs. $4.11 LSEG 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 firm had an FDIC charge of $2.9 billion. evaluation linked to the failures of regional banks.
While JPMorgan paid the largest valuation to support the FDIC’s deposit insurance fund among its peers, it was also a big winner from the regional banking crisis of 2023, as it he resumed First Republic after its bankruptcy, helping even more in deposits and assets.
Revenue climbed 10% to $43.74 billion, helped by Wall Street operations and better-than-expected net interest income of $23.47 billion, beating the StreetAccount estimate by nearly $400 millions.
Fixed income trading revenue jumped 20% to $5 billion, beating StreetAcount’s estimate of $4.42 billion on rising credit and currency results. Stock revenue rose 22% to $2 billion, missing estimates of $2.37 billion and underperforming the firm’s rivals to Goldman Sachs.
Investment banking fees jumped 49% to $2.48 billion, beating estimates of $2.39 billion.
CEO Jamie Dimon said in the release that the economy was “resilient,” supported by low unemployment and healthy consumer spending, as well as optimism for the Trump administration’s pro-growth agenda.
“However, two significant risks remain,” Dimon said. “Current and future spending needs will likely be inflationary, and therefore inflation may persist for some time. In addition, geopolitical conditions remain the most dangerous and complicated since World War II. As always, we hope for the best, but they prepare the company for a wide range of scenarios.”
In a call with reporters, CFO Jeremy Barnum said net interest income for 2025 would be about $94 billion.
Banks ended the year with plenty of reasons to be bullish: Wall Street activity picked up at the same time as Main Street consumers remained resilient, while Donald Trump’s election victory led to hopes of relief regulators.
While the business is thriving, analysts are likely to ask Dimon about his succession planning after his No. 2 executive, Daniel Pinto, said he was abandon as chief operating officer in June. Dimon signaled last year that he was likely to step down as CEO within five years.
Another question is how the changing outlook for the rate cuts of the Federal Reserve will have an impact on the bank in its large operations. While Fed officials expect two more cuts this year, economic indicators could prove time out.
Finally, analysts can press JPMorgan on what it intends to do with a possible capital if Trump’s regulators present a kinder version of Basel 3 Endgame, as potential candidates have supported. Dimon said last May that stock purchases would be muted because the stock it was expensivebut they have only climbed since.
In addition to JPMorgan, Goldman SachsWells Fargo is Citigroup They are also out with quarterly and annual results on Wednesday, while Bank of America and Morgan Stanley are due to report on Thursday.
This story is unfolding. Please check back for updates.
