JP Morgan Shares Rise Premarket After Bank Reports Record Profit Year
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JP Morgan Shares Rise Premarket After Bank Reports Record Profit Year

JPMorgan's shares rose 2.6% in premarket trading after record full-year profit and revenue.
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JPMorgan Chase & Co (NYSE: JPM) reported lower-than-expected revenue in the fourth quarter, but full-year profit and revenue marked record results, fueled by a seventh quarter of record net interest income. Several other Wall Street banks also unveiled their results Friday, showcasing a mixed performance within the sector.

JPMorgan Reports Record Full-Year Profit and Revenue

JPMorgan Chase announced its fourth-quarter and full-year results on Friday, marking its most profitable year ever. The Wall Street giant said profit in the US plunged 15% from a year earlier to $3.04 in the quarter, missing the consensus estimates of $3.35 per share. Revenue grew 12% from a year ago to $38.57 billion, falling short of the $39.73 billion analysts expected. 

For the full year, however, JPMorgan’s revenue and profit came in at $158.1 billion and $49.55 billion, each representing record results. 

The bank’s net interest rate income fueled the surge, which stood at $24.2 billion in the year’s final quarter. JPMorgan anticipates a potential increase of about $90 billion for 2024, contrary to analysts’ expectations of a 2% decline.

“Our record results in 2023 reflect over-earning on both NII and credit, but we remain confident in our ability to continue to deliver very healthy returns even after they normalize.”

– said JPMorgan CEO Jamie Dimon.

The bank’s executives said that lending revenue is exceptionally high due to extremely elevated interest rates and expect it to come down in the future. The net interest margin climbed to 2.81% from 2.72% in Q3. Shares of JPMorgan rose 1.8% in premarket trading Friday after closing 0.4% lower at $170.30 a day earlier.

Mixed Quarter for Big Banks’ Earnings

Besides JPMorgan, big banks’ earnings data has been mixed in the latest quarter.

As its fourth-quarter profit contracted, Bank of America (NYSE: BAC) saw a 2% premarket dip. It was impacted by a $2.1 billion allocation for discontinuing a loan index and replenishing the FDIC’s deposit insurance fund, depleted by regional lender collapses. 

Wells Fargo (NYSE: WFC) reported a profit surge aided by cost-cutting measures, but shares dipped 1.9%. 

Citigroup’s stock (NYSE: C) climbed 4.5% ahead of the market opening, despite a $1.8 billion quarterly loss. Meanwhile, BlackRock (NYSE: BLK) exceeded Q4 earnings expectations and revealed its foray into private markets by acquiring Global Infrastructure Partners.

With the Fed largely expected to cut interest rates this year, what are your expectations for the broader banking sector? Let us know in the comments below.