In this articleJPMFollow your favorite stocksCREATE FREE ACCOUNTJamie Dimon, President and CEO of JPMorgan Chase, speaking on CNBC’s “Squawk Box” at the World Economic Forum Annual Meeting in Davos, Switzerland, on Jan. 17, 2024.Adam Galici | CNBCJPMorgan Chase on Friday posted profit and revenue that topped Wall Street estimates as credit costs and trading revenue came in better than expected.Here’s what the company reported compared with estimates from analysts surveyed by LSEG:Earnings: $4.44 per share, vs. $4.11 expectedRevenue: $42.55 billion, vs. $41.85 billion expectedThe bank said first-quarter profit rose 6% to $13.42 billion, or $4.44 per share, from a year earlier, boosted by its takeover of First Republic during the regional banking crisis last year. Per share earnings would’ve been 19 cents higher excluding a $725 million boost to the FDIC’s special assessment to cover the costs tied to last year’s bank failures.Revenue rose 8% to $42.55 billion as the bank generated more interest income thanks to higher rates and larger loan balances.JPMorgan posted a $1.88 billion provision for credit losses in the quarter, far below the $2.7 billion expected by analysts. The provision was 17% smaller than a year ago, as the firm released some reserves for loan losses, rather than building them as they did a year earlier.While trading revenue overall was down 5% from a year earlier, fixed income and equities results topped analysts’ expectations by more than $100 million each, coming in at $5.3 billion and $2.7 billion, respectively.JPMorgan CEO Jamie Dimon called his company’s results “strong” across consumer and institutional areas, helped by a still-buoyant U.S. economy, though he struck a note of caution about the future.”Many economic indicators continue to be favorable,” Dimon said. “However, looking ahead, we remain alert to a number of significant uncertain forces” including overseas conflict and inflationary pressures.Though the biggest U.S. bank by assets has navigated the rate environment well since the Federal Reserve began raising rates two years ago, smaller peers have seen their profits squeezed.The industry has been forced to pay up for deposits as customers shift cash into higher-yielding instruments, squeezing margins. Concern is also mounting over rising losses from commercial loans, especially on office buildings and multifamily dwellings, and higher defaults on credit cards.Still, large banks are expected to outperform smaller ones this quarter.Shares of JPMorgan have jumped 15% this year, outperforming the 3.9% gain of the KBW Bank Index.Wells Fargo and Citigroup also report quarterly results Friday, while Goldman Sachs, Bank of America and Morgan Stanley report next week. This story is developing. Please check back for updates.Don’t miss these exclusives from CNBC PROThursday’s analyst calls: Boeing price target cut, Nvidia to rally more than 25%Citi says this ‘high risk’ but ‘attractive’ global stock has 280% upsideThis AI stock could fall 50% and …
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[mwai_chat context=”Let’s have a discussion about this article:nnIn this articleJPMFollow your favorite stocksCREATE FREE ACCOUNTJamie Dimon, President and CEO of JPMorgan Chase, speaking on CNBC’s “Squawk Box” at the World Economic Forum Annual Meeting in Davos, Switzerland, on Jan. 17, 2024.Adam Galici | CNBCJPMorgan Chase on Friday posted profit and revenue that topped Wall Street estimates as credit costs and trading revenue came in better than expected.Here’s what the company reported compared with estimates from analysts surveyed by LSEG:Earnings: $4.44 per share, vs. $4.11 expectedRevenue: $42.55 billion, vs. $41.85 billion expectedThe bank said first-quarter profit rose 6% to $13.42 billion, or $4.44 per share, from a year earlier, boosted by its takeover of First Republic during the regional banking crisis last year. Per share earnings would’ve been 19 cents higher excluding a $725 million boost to the FDIC’s special assessment to cover the costs tied to last year’s bank failures.Revenue rose 8% to $42.55 billion as the bank generated more interest income thanks to higher rates and larger loan balances.JPMorgan posted a $1.88 billion provision for credit losses in the quarter, far below the $2.7 billion expected by analysts. The provision was 17% smaller than a year ago, as the firm released some reserves for loan losses, rather than building them as they did a year earlier.While trading revenue overall was down 5% from a year earlier, fixed income and equities results topped analysts’ expectations by more than $100 million each, coming in at $5.3 billion and $2.7 billion, respectively.JPMorgan CEO Jamie Dimon called his company’s results “strong” across consumer and institutional areas, helped by a still-buoyant U.S. economy, though he struck a note of caution about the future.”Many economic indicators continue to be favorable,” Dimon said. “However, looking ahead, we remain alert to a number of significant uncertain forces” including overseas conflict and inflationary pressures.Though the biggest U.S. bank by assets has navigated the rate environment well since the Federal Reserve began raising rates two years ago, smaller peers have seen their profits squeezed.The industry has been forced to pay up for deposits as customers shift cash into higher-yielding instruments, squeezing margins. Concern is also mounting over rising losses from commercial loans, especially on office buildings and multifamily dwellings, and higher defaults on credit cards.Still, large banks are expected to outperform smaller ones this quarter.Shares of JPMorgan have jumped 15% this year, outperforming the 3.9% gain of the KBW Bank Index.Wells Fargo and Citigroup also report quarterly results Friday, while Goldman Sachs, Bank of America and Morgan Stanley report next week. This story is developing. Please check back for updates.Don’t miss these exclusives from CNBC PROThursday’s analyst calls: Boeing price target cut, Nvidia to rally more than 25%Citi says this ‘high risk’ but ‘attractive’ global stock has 280% upsideThis AI stock could fall 50% and …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
