JPMorgan Chase tops estimates on fixed income and investment banking results

JPMorgan Chase on Wednesday topped estimates for fourth-quarter revenue and profit as its Wall Street division posted better-than-expected results in fixed income trading and investment banking.

Here’s what the company reported:

Earnings: $4.81 a share vs. $4.11 LSEG estimate

Revenue: $43.74 billion vs. $41.73 billion expected

The bank said profit rose 50% to $14 billion in the quarter as noninterest expenses fell 7% from a year earlier, when the firm had a $2.9 billion FDIC assessment tied to regional bank failures.

Revenue climbed 10% to $43.74 billion, helped by Wall Street operations and better than expected net interest income.

Banks ended the year with several reasons to be bullish: Wall Street activity has picked up at the same time that Main Street consumers remain resilient, while the election victory of Donald Trump has led to hopes of regulatory relief.

JPMorgan, the biggest American bank by assets, stands to benefit on several fronts.

Last month, executives said that investment banking revenue would surge 45% in the fourth quarter, and that trading revenue would jump about 15%.

Further, the bank said that its latest projection for 2025 net interest income was $2 billion higher than previous guidance, leading analysts to speculate that fourth-quarter NII would also top expectations.

While the business is thriving, analysts will likely ask CEO Jamie Dimon about his succession planning after his No. 2 executive, Daniel Pinto, said he was stepping down as chief operating officer in June. Dimon signaled last year that he was likely to step down as CEO within five years.

Another question is how the changing outlook for Federal Reserve rate cuts will impact the bank across its sweeping operations. While Fed officials expect two more cuts this year, economic indicators could cause them to pause.

Finally, analysts may press JPMorgan on what it intends to do with a possible windfall of capital if Trump regulators present a gentler version of the Basel 3 Endgame, as potential nominees have supported. Dimon said last May that share buybacks would be muted because the stock was expensive, but they’ve only climbed since.

Besides JPMorgan, Goldman Sachs, Wells Fargo and Citigroup are also reporting quarterly and full-year results Wednesday, while Bank of America and Morgan Stanley are due to report on Thursday.

Source: https://www.cnbc.com/2025/01/15/jpmorgan-chase-jpm-earnings-q4-2024.html