
JPMorgan Chase posted record quarterly and annual profits and revenue on Wednesday, cementing the company’s status as the largest and most profitable bank in U.S. history.
This is what the company reported:
- Income: $4.81 per share vs. $4.11 LSEG estimate
- Gain: $43.74 billion versus $41.73 billion expected
The bank said fourth-quarter profit rose 50% to $14 billion, while non-interest expenses fell 7% from a year earlier, when the company had an FDIC of $2.9 billion. research linked to regional bank failures.
Revenue rose 10% to $43.74 billion, helped by Wall Street activity and better-than-expected net interest income of $23.47 billion, beating the StreetAccount estimate by nearly $400 million.
The bank’s shares rose 1.1% in morning trading.
JPMorgan was already the largest U.S. bank by assets when it won an auction in 2023 to acquire First Republic from the Federal Deposit Insurance Corp.’s receivership. fund, it was also a major winner of the regional banking crisis, amassing even more deposits and assets during the turmoil.
Fixed income trading revenue rose 20% to $5 billion, ahead of the StreetAcount estimate of $4.42 billion based on rising credit and currency performance. Equities revenue rose 22% to $2 billion, missing the $2.37 billion estimate and underperforming the company’s rivals. Goldman Sachs.
Investment banking costs rose 49% to $2.48 billion, ahead of the estimate of $2.39 billion.
CEO Jamie Dimon said in the press release that the economy was “resilient,” supported by low unemployment and healthy consumer spending, as well as optimism about the Trump administration’s pro-growth agenda.
“However, two significant risks remain,” Dimon said. “Current and future spending needs are likely to be inflationary, and therefore inflation may persist for some time. Moreover, geopolitical conditions remain the most dangerous and complicated since World War II. As always, we hope for the best, but are preparing the company for a wide range of scenarios.”
On a call with reporters, CFO Jeremy Barnum said net interest income for 2025 would be about $94 billion.
Banks ended the year with several reasons to be optimistic: Wall Street activity has increased while Main Street consumers remain resilient, while Donald Trump’s election victory has raised hopes for regulatory relief.
As the company thrives, analysts are likely to ask Dimon about his succession planning after his No. 2 director, Daniel Pinto, said he resigned as chief operating officer in June. Dimon announced last year that he would likely step down as CEO within five years.
Another question is how the changing outlook for Federal Reserve rate cuts will affect the bank in all its far-reaching activities. While Fed officials expect two more cuts this year, economic indicators could cause interest rates to hit pause.
Finally, analysts may press JPMorgan on what it plans to do with a potential capital windfall if Trump’s regulators present a softer version of the Basel 3 endgame, as potential nominees have supported. Dimon said last May that share buybacks would be toned down because the shares were expensive, but they have only gone up since then.
In addition to JPMorgan, Goldman SachsWells Fargo and Citi Group will also report quarterly and annual results on Wednesday Bank of America and Morgan Stanley will report on Thursday.