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JPMorgan Chase beat estimates for fourth-quarter revenue and profit on Wednesday, helped by better-than-expected net interest income and fixed-income trading and investment banking results.
Here’s what the company said:
- Earnings: $4.81 per share vs. LSEG’s estimate of $4.11
- Revenue: $43.74 billion vs. $41.73 billion expected
The bank reported a 50% jump in profit to $14 billion in the quarter as non-interest expenses fell 7% from a year earlier, when the firm had $2.9 billion in FDIC assessment associated with the bankruptcy of regional banks.
Revenue rose 10% to $43.74 billion, driven by Wall Street operations and better-than-expected net interest income of $23.47 billion, beating StreetAccount estimates by about $400 million.
Banks ended the year with several reasons to be bullish, with activity on Wall Street picking up at the same time as Main Street consumers remain resilient, while Donald Trump’s election victory led to hopes of easing regulation.
JPMorgan, the largest US bank by assets, stands to gain on several fronts.
Last month, executives said there would be profits from investment banking services surge 45% in the fourth quarter, and that trading revenue will jump about 15%.
The bank also said its latest forecast for net interest income in 2025 was $2 billion higher than previous guidance, leading analysts to expect fourth-quarter NII to beat expectations as well.
As long as the business is thriving, analysts are likely to ask the CEO Jamie Dimon about his succession planning after his No. 2 boss, Daniel Pinto, said he was leaving as chief operating officer in June. Dimon said last year that he would likely step down as CEO within five years.
Another question is how a change in the Federal Reserve’s rate cut outlook will affect the bank across its broader operations. While Fed officials expect two more cuts this year, economic indicators could trigger them a pause.
Finally, analysts may press JPMorgan on what it intends to do with a possible capital windfall if Trump’s regulators present more delicate version of Basel 3 Endgame, as potential nominees supported. Dimon said last May that the share buyback would be stopped because the stock it was expensivebut since then they have only climbed.
In addition to JPMorgan, Goldman SachsWells Fargo and Citigroup also with quarterly and annual results on Wednesday, so far Bank of America and Morgan Stanley are due to report on Thursday.
This story is evolving. Check for updates.
