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JPMorgan Chase (JPM) reported fourth-quarter outcomes Wednesday that got here in above analysts’ expectations as funding banking charges rose.
The world’s greatest financial institution by market capitalization reported revenue of $14 billion on income of $42.77 billion. Analysts polled by Seen Alpha anticipated $11.92 billion and $41.49 billion, respectively.
Internet curiosity revenue—the distinction between the income generated from interest-bearing belongings and the bills of interest-bearing liabilities—got here in at $23.35 billion, above the $22.93 billion consensus estimate.
The higher-than-expected outcomes got here because the agency’s funding banking income jumped 46% from the identical time final yr, as JPMorgan’s charges throughout its merchandise rose 49%.
JPMorgan shares edged about 1.5% larger to $251.09 in intraday buying and selling Wednesday following the outcomes. They’ve gained roughly 50% over the previous yr.
JPMorgan CEO Jamie Dimon stated the outcomes got here because the U.S. financial system “has been resilient,” noting “unemployment stays comparatively low, and client spending stayed wholesome, together with throughout the vacation season. Companies are extra optimistic in regards to the financial system, and they’re inspired by expectations for a extra pro-growth agenda and improved collaboration between authorities and enterprise.”
Nevertheless, Dimon stated he nonetheless sees two “vital dangers” to the financial system, including that “ongoing and future spending necessities will possible be inflationary, and due to this fact, inflation might persist for a while. Moreover, geopolitical circumstances stay probably the most harmful and sophisticated since World Battle II.”
Dimon was additionally requested about plans to call a successor on the financial institution’s earnings name Wednesday, to which he responded that JPMorgan’s board is reviewing numerous candidates, however {that a} successor is “not decided but.”
Together with JPMorgan, a number of different banking giants together with Goldman Sachs (GS), Citigroup (C) and Wells Fargo (WFC) reported better-than-expected earnings Wednesday, in a powerful begin to the fourth-quarter earnings season.
JPMorgan principally beat estimates within the first three quarters of fiscal 2024 as its asset administration and funding banking segments grew over the final yr.
UPDATE—Jan. 15, 2024: This text has been up to date to incorporate data from the corporate’s earnings name and replicate newer share worth values.
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