Chase CEO Jamie Dimon looks on as he attends the seventh “Choose France Summit”, aimed at attracting foreign investors to the country, at Chateau de Versailles, outside Paris, on May 13, 2024.
Lucović Marin | Getty Images
JPMorgan Chase announced fourth-quarter earnings before the open on Wednesday.
Here’s what the company posted compared to what Wall Street analysts polled by LSEG were expecting:
- Earnings: $4.81 per share, versus $4.11 expected
- Revenue: $43.74 billion, versus $41.73 billion expected
JPMorgan’s results will be closely watched for signs that industry optimism is justified.
Banks ended the year with several reasons to grow: Wall Street activity picked up at the same time as Main Street consumers remained resilient, while Donald Trump’s election victory led to hopes for regulatory relief.
JPMorgan, America’s largest bank by assets, stands to benefit on several fronts.
Last month, executives said that income from investment banking would wave 45% in the fourth quarter, and that trading revenue would jump by about 15%.
Furthermore, the bank said its latest projection for net interest income in 2025 was $2 billion higher than previous guidance, prompting analysts to speculate that fourth-quarter NII would also beat expectations.
As the business progresses, analysts are likely to ask the CEO Jamie Dimon about his succession planning after his No. 2 CEO, Daniel Pinto, said he had stepping back as chief operating officer in June. Dimon signaled last year that he would likely step down as CEO within five years.
Another question is how the changing outlook for Federal Reserve interest rate cuts will affect the bank in its overall operations. While Fed officials expect two more cuts this year, economic indicators could cause that to happen break.
Ultimately, analysts could press JPMorgan on what it intends to do with the possible capital windfall if Trump’s regulators present gentler version of Basel 3 Endgame, as supported by potential candidates. Dimon said last May that stock buybacks would be muted because the stock was expensivebut since then they have only climbed.
In addition to JPMorgan, Goldman SachsWells Fargo and Citigroup also publish quarterly and annual results on Wednesday, while Bank of America and Morgan Stanley are due to report on Thursday.
This story is evolving. Check again for updates.
