JPMorgan Chase & Co (JPM) – Get a free report released stronger-than-expected fourth-quarter results on Friday and said the US economy remains strong, with solid consumer spending and healthy business activity.
JPMorgan said earnings for the three months ended December were posted at $11.1 billion, or $3.57 per share, up 7.2% from the same period last year and well above below the Street consensus forecast of $3.08 per share. The bank also built up $2.3 billion in reserves to offset bad loans and loan losses, beating analysts’ forecast of $1.8 billion in total loan provisions.
Revenue under management, JPMorgan said, rose 13.9% year over year to $34.57 billion, narrowly beating analyst estimates of $34.38 billion, while expenses were priced at $19 billion
Net interest income was $20.3 billion, up 48% from the year-ago period, JPMorgan said, while equity market income was flat at $1.9 billion and fixed income income was up up 12% to $3.7 billion.
“The US economy remains strong right now as consumers are still spending excess money and businesses are healthy,” said Jamie Dimon, CEO of JPMorgan. “However, we still do not know the ultimate impact of headwinds from geopolitical tensions, including the war in Ukraine, fragile energy and food supplies, persistent inflation that has eroded purchasing power and pushed up interest rates, and the unprecedented quantitative tightening.
“We remain vigilant and prepared for whatever happens so we can serve our customers, customers and communities around the world across a broad spectrum of economic environments,” he added.
JPMorgan shares were down 2.22% in premarket trading immediately after the earnings release, indicating an opening bell price of $136.50 each.
Early Friday, Bank of America (BACXL) posted better-than-expected earnings of 85 cents per share, beating Street’s forecasts by about 7 cents, with revenue rising 11% year over year to $24.25 billion.
Net interest income was set at $14.7 million, according to Bank of America.
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