JPMorgan Chase Q4 2023 Adj EPS $3.97 Beats $3.36 Estimate, Sales $38.60B Miss $39.78B Estimate
JPMorgan Chase Q4 2023 Adj EPS $3.97 Beats $3.36 Estimate, Sales $38.60B Miss $39.78B Estimate.
Financials
BlackRock’s Q4 Adjusted Earnings, Revenue Increase; Signs Deal to Acquire Global Infrastructure Partners
BlackRock (BLK) reported Q4 adjusted earnings Friday of $9.66 per diluted share, up from $8.93 a year earlier. Analysts surveyed by Capital IQ expected $8.84. Revenue for the quarter ended Dec. 31 was $4.63 billion compared with $4.34 billion a year earlier. Analysts surveyed by Capital IQ estimated $4.63 billion. The company said its board approved a 2% increase in the quarterly cash dividend to $5.10 per share, payable on March 22 to shareholders on record as of March 7. In a separate statement, BlackRock and Global Infrastructure Partners, or GIP, said they signed a deal for BlackRock’s acquisition of GIP for $3 billion in cash and about 12 million common BlackRock shares. BlackRock plans to fund the transaction’s cash consideration using $3 billion in additional debt, while the stock consideration will be deferred and issued in about five years, according to the statement. The company said the acquisition is
JPMorgan’s 4Q Profit Slips But Bank Still Posts Its Most Profitable Year Ever — WSJ
By David Benoit JPMorgan Chase finished out its most profitable year ever with $9.3 billion in fourth-quarter income, it said Friday. Here are the key figures. — The biggest bank in the U.S. said profit fell 15% from a year earlier, to $3.04 per share in the quarter. Analysts had expected $3.35 per share, according to FactSet. — Revenue rose 12% to $38.57 billion, falling short of the $39.73 billion analysts expected. — For the full year, JPMorgan’s revenue rose 23% to $158.1 billion and profit rose 32% to $49.55 billion. Both were record results. — The bank has benefited from rising interest rates lifting its lending income, which has climbed faster than expected. In the fourth quarter, JPMorgan earned $24.05 billion in net interest income, the amount of revenue it makes on lending minus what it pays out on deposits. — Executives have said that lending revenue is abnormally
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Wells Fargo Says It Gained Market Share in 4Q
Wells Fargo says it gained market share in its credit card products and investment banking businesses in 4Q. Chief Executive Charlie Scharf says the bank’s new credit card products drove a rise in consumer spending significantly better than the industry average. He also points to 26% revenue growth in Wells Fargo’s Corporate and Investment Bank segment. Company-wide revenue rises just over 2% to $20.48 billion, surpassing the $20.3 billion forecast by analysts according to FactSet.
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JPMorgan Chase’s Q4 Adjusted Earnings, Revenue Increase
JPMorgan Chase (JPM) reported Q4 adjusted earnings Friday of $3.97 per share, up from $3.04 a year earlier. Analysts polled by Capital IQ expected $3.60. Revenue expressed as the sum of total noninterest income and net interest income for the quarter ended Dec. 31 was $38.57 billion, compared with $34.55 billion a year earlier. Analysts surveyed by Capital IQ estimated $39.78 billion.
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JPMorgan Expects Lower 2024 Interest Income As Rates Come Down
JPMorgan is expecting net interest income, excluding markets revenue, of around $88B in 2024, down from $94B in 2023 on the assumption that the Federal Reserve will cut rates six times during the year. The expected cuts come after the Fed hiked rates, hoping to cool rapid inflation. Including markets revenue, the figure is expected to drop to $90B from $97B, reflecting an $8B pullback from rate cuts, deposit repricing and internal migration offset by $1.5B in loan growth, including continuing growth in crest card revolving balances, along with modest deposit attrition.
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Wells Fargo Reports Fourth Quarter 2023 Net Income of $3.4 billion, or $0.86 per Diluted Share
Financial Results Net income of $3.4 billion, or $0.86 per diluted common share Revenue of $20.5 billion, up 2% – Net interest income of $12.8 billion, down 5% – Non-interest income of $7.7 billion, up 17% Non-interest expense of $15.8 billion, down 2% Pre-tax pre-provision profit of $4.7 billion, up 22% Effective income tax rate of (3.0)% included $621 million of discrete tax benefits Average loans of $938.0 billion, down 1% Average deposits of $1.3 trillion, down 3% Credit Quality Provision for credit losses of $1.3 billion – Total net loan charge-offs of $1.3 billion, up $692 million, with net loan charge-offs of 0.53% of average loans (annualized) – Allowance for credit losses for loans of $15.1 billion, up $1.5 billion Capital and Liquidity CET1 capital of $140.8 billion CET1 ratio of 11.4% under the Standardized Approach and 12.7% under the Advanced Approach Liquidity coverage ratio (LCR) of 125%
Citigroup Swings to Q4 Net Loss, Lower Revenue
Citigroup (C) reported a Q4 net loss Friday of $1.16 per diluted share swinging from earnings of $1.16 a year earlier. Analysts polled by Capital IQ expected earnings of $0.60. Revenue for the quarter ended Dec. 31 was $17.44 billion, down from $18.01 billion a year earlier. Analysts surveyed by Capital IQ expected $18.75 billion.
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JPMorgan Forecasts Declines for Interest Income — WSJ
By David Benoit The booming gains in lending profits at JPMorgan Chase and other banks may be ending. Throughout 2023, the biggest bank in the country benefited from higher interest rates and had to continually increase its forecast for net-interest income, the amount of revenue it collects from loans minus what it pays for deposits and funds. It earned a record $89.27 billion in net-interest income in 2023, up 34% from the prior year. Friday, JPMorgan forecast lending profits would slide to $88 billion for 2024, minus its volatile markets business. Their forecast assumes 6 rate cuts in the new year, a decline in deposits and muted loan growth. The forecast looked like a steeper decline when compared to the rate it was earning in the fourth quarter, CFO Jeremy Barnum said, calling for “meaningful sequential quarterly declines throughout 2024.” Wells Fargo is also forecasting net-interest income will fall in
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Citigroup Says Card Spending Growth Flat In 4Q
Slower spending by U.S. cardholders continued in 4Q, according to Citigroup. Citi says U.S. credit card spend volume was up 2% year-on-year, the same growth rate as in the previous quarter. That is a slowdown from in late 2022 and early 2023, when credit card volumes grew 7% from a year earlier, according to Citi results. Weaker spending growth among cardholders is a sign of slumping spending by consumers amid higher interest rates and dwindling pandemic-era savings.
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CFRA Retains Buy Rating On Shares Of Jpmorgan Chase & Co.
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our $190 target, a forward P/E of 11.9x, below the three-year historic average at 12.3x. We raise our 2024 EPS view by $0.05 to $16.00 and set 2025’s at $16.30. Q4 2023 adjusted EPS was $3.97, a $0.36 earnings beat. A soft landing for the U.S. economy bodes well for loan growth, which offsets lower rates for net interest income (NII). In 2024, JPM is guiding for NII at $90B vs. $94B in 2023. In Q4 2023, NII rose 19% Y/Y, with an interest rate spread at 2.03% vs. 1.99% Y/Y (2.00% Q/Q) and total loans +20% Y/Y, while deposit-related fees were +3%. Consumer net revenue was +15%, with banking/wealth management +7%, home lending +50%, and card services and auto +14%. Commercial banking revenue was
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Bank of America CFO Says Well Positioned Against Proposed Rules To Boost Capital
Bank of America CFO Says Well Positioned Against Proposed Rules To Boost Capital; On A Weighted Basis We Have Reserved For An Unemployment Rate Of Nearly 5% By The End Of 2024; Saw Lower Marks On Leveraged Loan Positions Year-On-Year.
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