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JPMorgan Chase, America's largest bank reported better than expected Q4 earnings Tuesday before the open. $JPM saw quarter profit rise 21% to $8.52 billion, or $2.68 a share. Equities Revenue was $1.37 billion. Wells Fargo $WFC and Citigroup also report Tuesday.

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 JPMorgan Chase & Co NYSE: JPM · Report Earnings Before Open Tuesday

$2.35 Beat $2.35 EPS AND $29.2 Bil Beat $27.94 Billion Forecast in Revenue

Earnings

JPMorgan Chase & Co (NYSE: JPM) reported fourth-quarter profits Thigher by 21% to $8.52 billion, or $2.57 a share, compared with the $2.35 estimate of analysts surveyed by Refinitiv. Managed revenue climbed 9% to $29.2 billion, compared with the $27.94 billion estimate. Trading revenue was the big boon

Lower interest rates impacted the bank’s net yield on interest-earning assets, which fell to 2.38% from 2.55% a year earlier, slightly better than the 2.37% estimate.

JPM stock has outperformed other big banks over the past year.  In the JPMorgan conference call watch for macro expectations and risk given the recent weakness in many asset classes with a focus on costs. Higher interest rates boosted the results even with home lending revenue down in the past.

JPMorgan Chase & Co NYSE: JPM

Market Reaction Pre-market 138.46 +1.26 (0.92%)

Highlights

“JP Morgan Chase produced strong results in the fourth quarter of 2019, capping off a solid year for the firm where we achieved many records, including record revenue and net income,” “While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year.” CEO Dimon said in the release.

  • Investment bank profit surged 48% to $2.9 billion, mainly on trading and sales.
  • Bond trading revenue surged 86% to $3.4 billion, exceeding the $2.61 billion estimate by roughly $800 million with a boost in securitized products and rates.
  • Equity traders posted a 15% increase in revenue to $1.5 billion, compared with the $1.35 billion estimate.
  • Retail banking division, fourth-quarter profit rose 5% to $4.2 billion. While the division’s overall revenue climbed 3% to $14 billion, helped by strong credit card and auto loan results
  • Core banking business revenue dropped 2% to $6.4 billion as margins shrank on lower interest rates.
  • Commercial bank posted a 9% drop in profit to $938 million as lower net interest income compressed margins and the bank boosted its provision for credit losses.
  • Asset and wealth management posted a 30% increase in profit to $785 million as rising asset levels boosted results.

 

      • JPM CEO Jamie Dimon is also chairman of the Business Roundtable for the Trump administration. 

Source: JPM, AlphaStreet

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