JPMorgan

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JPMorgan Chase Q4 2023 Adj EPS $3.97 Beats $3.36 Estimate, Sales $38.60B Miss $39.78B Estimate.

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

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.

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.

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

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

The following is a summary of the JPMorgan Chase & Co. (JPM) Q4 2023 Earnings Call Transcript: Financial Performance: JPMorgan Chase reported Q4 net income of $9.3 billion and revenue of $39.9 billion and for the full year, the firm reported a net income of $50 billion and revenue of $162 billion. The firm’s revenue increased by 7% year-on-year. Credit costs were $2.6 billion due to increases in Card and single-name exposures in Wholesale. Consumer & Community Banking saw an 8% year-on-year revenue increase due to strong account growth and stable consumer spend. Commercial Banking reported a 7% year-on-year revenue increase primarily driven by higher NII. JP Morgan’s Asset & Wealth Management reported a net income of $925 million with 28% pretax margin due mainly to higher management fees on strong net inflows and market levels, offset to some extent by lower NII. The estimated net interest income ex-Markets for

JPMorgan Chase & Co. (NYSE: JPM) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/09/2024 10.5% Deutsche Bank $140 → $190 Upgrades Hold → Buy 01/04/2024 9.33% B of A Securities $177 → $188 Maintains Buy 01/02/2024 23.29% Barclays $186 → $212 Maintains Overweight 12/18/2023 — Daiwa Capital Upgrades Outperform → Buy 11/16/2023 41.32% Oppenheimer $233 → $243 Maintains Outperform 10/16/2023 -1.13% Piper Sandler $168 → $170 Maintains Overweight 10/16/2023 -0.55% BMO Capital $167 → $171 Maintains Market Perform 10/16/2023 35.5% Oppenheimer $215 → $233 Maintains Outperform 10/16/2023 11.08% Morgan Stanley $187 → $191 Maintains Overweight 10/03/2023 8.75% Morgan Stanley $179 → $187 Maintains Overweight 09/26/2023 25.04% Oppenheimer $219 → $215 Maintains Outperform 09/12/2023 -8.11% RBC Capital → $158 Reiterates Outperform → Outperform 09/12/2023 4.1% Morgan Stanley $173 → $179 Maintains Overweight 09/08/2023 -8.11% RBC Capital → $158 Reiterates Outperform → Outperform

JPMorgan Chase & Co.’s stock (JPM) is currently trading at $171.81, up about 1%. If the gains hold through the market close, the stock will hit a new all-time high for the first time since October 2021, according to Dow Jones Market Data. To set a record, the stock would have to close above $171.78, its closing level on Oct. 22, 2021. In the past year, JPMorgan has been buoyed by its acquisition of First Republic as well as profit momentum of larger banks over smaller regional banks. The stock rose about 26.9% in 2023 including December’s rise of 10.2%. The S&P 500 rose 24.2% in 2023. -Steve Gelsi

JPMorgan Chase & Co. (NYSE: JPM) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/02/2024 24.71% Barclays $186 → $212 Maintains Overweight 12/18/2023 — Daiwa Capital Upgrades Outperform → Buy 11/16/2023 42.94% Oppenheimer $233 → $243 Maintains Outperform 10/16/2023 0% Piper Sandler $168 → $170 Maintains Overweight 10/16/2023 0.59% BMO Capital $167 → $171 Maintains Market Perform 10/16/2023 37.06% Oppenheimer $215 → $233 Maintains Outperform 10/16/2023 12.35% Morgan Stanley $187 → $191 Maintains Overweight 10/03/2023 10% Morgan Stanley $179 → $187 Maintains Overweight 09/26/2023 26.47% Oppenheimer $219 → $215 Maintains Outperform 09/12/2023 -7.06% RBC Capital → $158 Reiterates Outperform → Outperform 09/12/2023 5.29% Morgan Stanley $173 → $179 Maintains Overweight 09/08/2023 -7.06% RBC Capital → $158 Reiterates Outperform → Outperform 09/07/2023 -6.47% HSBC → $159 Initiates Coverage On → Hold 08/18/2023 28.82% Oppenheimer $227 → $219 Maintains Outperform 08/01/2023 -5.88% Atlantic Equities

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We think a wider risk premium for JPM shares can be supported by our view of a soft landing for the U.S. economy and lower rates that propel higher borrowing and risk taking. We raise our target by $15 to $190 on a forward P/E of 11.9x our 2024 earnings estimate, still below the three-year historic average of 12.3x. We keep our EPS estimates at $17.00 for 2023 and at $15.95 for 2024; our revenue forecast is $160B for 2023 and $159.5B for 2024. Loan growth remains critical, in our view, to net interest income (NII) and noninterest income in 2024, assuming economic growth and no recession. In Q3 2023, NII rose 30% Y/Y, with a rise in interest rate spread to 2.00% vs. 1.79% Y/Y (1.97%