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JPMorgan Chase, America's largest bank reported better than expected Q4 earnings Friday before the open. $JPM investment-banking revenues rose 37% fueled by fixed-income revenues up 15% rise to $4 billion and equity revenues soaring 32% to $2 billion. Citgroup, PNC and Wells Fargo also reported Friday.

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 JPMorgan Chase & Co NYSE: JPM · Reported Earnings Before Open Friday

$3.79 Beat $2.65 EPS Forecast AND $30.2 Bil Beat $28.7 Billion Forecast in Revenue

Earnings

JPMorgan Chase & Co (NYSE: JPM) reported fourth quarter profit of $12.14 billion versus $8.13 billion estimated with earnings per share of $3.79 versus $2.65 estimated on revenue of $30.2 billion versus $28.7 billion estimated.

JPM stock has outperformed other big banks over the past year. In the JPMorgan conference call analysts watched for macro expectations and risk given the recent weakness in many asset classes with a focus on costs from the COVID-19 lockdown. Lower interest rates hurt the results also.

  

JPMorgan Chase & Co NYSE: JPM

Market Reaction Pre-market 138.47 −2.70 (-1.91%) 138.87. Close ▼ 2.18 (-1.55%)

Highlights

Jamie Dimon, Chairman and CEO, commented on the financial results: “JPMorgan Chase reported strong results in the fourth quarter of 2020, concluding a challenging year where we generated record revenue, benefiting from our diversified business model and dedicated employees.”

  • JPMorgan's corporate and investment-banking division saw a 17% increase in net revenue as well as a 82% rise in net income to $5.3 billion, fueled by reserve releases. The segment's higher sales reflected a 37% jump in investment-banking revenues due to higher fees, also a 20% increase in trading revenues. That was fueled by a 15% rise in revenues to $4 billion in the fixed-income division, and the equity division's revenues surging 32% to $2 billion.
  • JPMorgan's commercial-banking business had a 115% increase in net income to $2 billion, largely due to $1.2 billion in reserve releases. Net revenues rose 10%
  • in the asset-and-wealth management division due to larger performance and management fees. Higher expenses and a negligible benefit from reserve releases meant net income slid 2% in the wealth segment.
  • The banks's consumer-and-community banking division posted an 8% drop in net revenue to $12.7 billion, reflecting lower margins on deposits.

 

Still, the bank faces an incredibly broad range of outcomes tied to the coronavirus pandemic. 

 

Source: JPM, AlphaStreet

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