Core Viewpoint - American banks are optimistic about regulatory rollbacks with Donald Trump's return to the White House, as indicated by J.P. Morgan's head of asset and wealth management, Mary Erdoes [1] Group 1: Regulatory Environment - Erdoes highlighted that the previous administration introduced eight times more significant regulations compared to the Trump administration, leading to extensive paperwork that hampers economic growth [2] - There is concern among European banks that a relaxed regulatory approach in the U.S. could create a competitive disadvantage if Europe tightens its regulatory framework, such as Basel 3.1 [2] - Standard Chartered's CEO emphasized the need for consistent global regulations to prevent market arbitrage, suggesting that the U.K. may align more closely with U.S. regulations [3] Group 2: Potential Changes in Regulation - The U.K. government is expected to lead in deregulation, having delayed the implementation of Basel III to observe the U.S. approach [4] - The Trump administration's regulatory plans remain unclear, but there are discussions about significant changes, including the potential abolition of the FDIC and restructuring of banking regulatory agencies [5]

Interest Rate and Treasury Yield - The 10-year treasury yield has risen substantially to 4.68% since the Federal Reserve started cutting interest rates, and it is approximately 30 bps away from the five-year all-time highs [1] Investment Strategy - The analyst focuses on stocks that combine strong growth stories with robust financial statements, favoring both growth and quality factors [1] - The analyst has passed all CFA Program exams and has been investing for seven years, with a preference for leading financial firms [1] Analyst's Position - The analyst holds a beneficial long position in JPM through stock ownership, options, or other derivatives [2]

Investment Rating - The report does not explicitly state the investment rating for J.P. Morgan (JPM.US) but indicates strong performance metrics that suggest a positive outlook [1][2]. Core Insights - J.P. Morgan's Q4 2024 revenue and profit exceeded expectations, driven by strong performance in consumer community banking, commercial banking, and asset wealth management, while corporate investment banking fell short [2][3]. - The bank reported a year-over-year revenue growth of 10.9%, surpassing Bloomberg's consensus forecast of 7.2% [3][8]. - Net profit attributable to common stockholders increased by 54.1% year-over-year, exceeding the expected 31.8% [3][8]. - The net interest margin (NIM) improved by 3 basis points quarter-over-quarter to 2.61%, higher than the forecast of 2.53% [3][8]. - The Common Equity Tier 1 (CET1) capital ratio rose by 0.7 percentage points year-over-year to 15.7%, also above the expected 15.2% [3][8]. Summary by Sections Revenue and Profit Performance - Total revenue for Q4 2024 was $42.768 billion, compared to the expected $41.355 billion, with a year-over-year increase of 10.9% [5]. - Net interest income was reported at $23.350 billion, a decrease of 2.9% year-over-year, but better than the expected decline of 4.7% [5]. - Non-interest income surged by 33.7% year-over-year to $19.418 billion, exceeding the forecast of 28.2% [5]. Loan and Deposit Growth - Total loans grew by 1.8% year-over-year to $1.348 trillion, slightly below the expected growth of 1.9% [5]. - Total deposits increased by 0.2% year-over-year to $2.406 trillion, which was lower than the expected 1.7% growth [5]. Asset Quality and Provisions - Total provisions for credit losses were $2.631 billion, better than the expected $3.038 billion [5]. - The non-performing loans (NPL) ratio increased to 0.65%, which was higher than the expected 0.58% [5]. Future Outlook - J.P. Morgan anticipates a net interest income (NII) of $94 billion for 2025, reflecting a 1% year-over-year growth due to lower funding costs [3]. - The bank expects total expenses to be around $95 billion in 2025, a 4.3% increase from the previous year [3].

Consumer Spending and Deposit Trends - Consumer spending remained healthy, with increased credit and debit card use, and deposit account balances were drawn down [1] - Credit and debit card sales volume in the consumer/community banking segment increased by 8% year on year to $477.6 billion, with card services sales volume surging to $335.1 billion from $307.2 billion last year [3] - Deposits in the consumer/community banking segment were just over $1 trillion, down 4% year on year [3] - Consumer balances have stabilized, and there has been growth in consumer checking deposits, although overall deposits were down year on year [6] Mobile Banking Growth - Active mobile customers increased by 7% to 57.8 million in the latest quarter, continuing the growth trend seen over several quarters [4] Future Expectations and Loan Growth - The company expects growth in revolving loans tied to cards and modestly higher deposit balances in the current year [5] - The net charge-off rate on the cards business is expected to be around 3.6% [5] - Card loan growth will be healthy but below the 12% pace seen in 2024, as tailwinds from revolving normalization are largely behind us [6] Regulatory Environment and Business Sentiment - The company seeks a coherent, rational, and holistically assessed regulatory framework that allows banks to support the economy without being reflexively anti-bank [8] - There has been improvement in business sentiment, and balance sheets at small businesses are healthy [8] Financial Performance and Market Reaction - Shares were up roughly 1% in intraday trading on Wednesday [7]

Financial Data and Key Metrics - Net income reported at $14 billion, with EPS of $4.81 and revenue of $43.7 billion, achieving an ROTCE of 21% [1] - Revenue increased by $3.8 billion or 10% year-on-year to $43.7 billion [1] - NII ex-markets decreased by $548 million or 2%, primarily due to lower rates, deposit margin compression, and lower deposit balances in CCB, partially offset by securities reinvestment, higher revolving balances in card, and higher wholesale deposit balances [1] - NII ex-markets increased by $3.1 billion or 30%, or 21% excluding prior year's net investment securities losses, driven by higher asset management fees and investment banking fees [6] - Markets revenue rose by $1.2 billion or 21% [6] - Expenses decreased by $1.7 billion to $22.8 billion [6] Business Line Performance - CCB experienced lower deposit balances, impacting NII ex-markets [1] - Higher revolving balances in card and wholesale deposit balances partially offset the decline in NII ex-markets [1] - Asset management fees and investment banking fees contributed significantly to the increase in NII ex-markets [6] Market Performance - Markets revenue showed strong growth, increasing by $1.2 billion or 21% [6] Strategic Direction and Industry Competition - No specific details provided in the content regarding strategic direction or industry competition Management Commentary on Operating Environment and Future Outlook - No direct management commentary on the operating environment or future outlook provided in the content Other Important Information - The earnings call was hosted by JPMorgan Chase's Chairman and CEO, Jamie Dimon, and CFO, Jeremy Barnum [3][4] - The call included participants from major financial institutions such as Truist Securities, Wells Fargo Securities, and Morgan Stanley [5] Q&A Session Summary - No Q&A session details provided in the content

Solid investment banking (IB) and trading performance drove JPMorgan’s (JPM) fourth-quarter 2024 earnings to $4.81 per share. The bottom line handily surpassed the Zacks Consensus Estimate of $4.03.See the Zacks Earnings Calendar to stay ahead of market-making news.Behind JPMorgan’s Headline NumbersAs expected, the IB business witnessed solid growth. Equity underwriting fees jumped 54% and debt underwriting fees grew 56%. Also, advisory fees rose 41%. Overall, total IB fees (in the Commercial & Investment B ...

Financial Performance - JPMorgan Chase & Co reported $42.77 billion in revenue for Q4 2024, a 10.9% YoY increase [1] - EPS for Q4 2024 was $4.81, compared to $3.97 a year ago [1] - Revenue exceeded Zacks Consensus Estimate by 4.43% ($40.96 billion) [1] - EPS surpassed consensus estimate by 19.35% ($4.03) [1] Key Metrics Analysis - Net loan charged-off on Average loans (Total retained loans) was 0.7%, matching analyst estimates [4] - Book value per share stood at $116.07, slightly above the $116.06 estimate [4] - Total Interest Earning Assets - Average Balance was $3,571.96 billion, below the $3,595.29 billion estimate [4] - Total Non-Performing Assets reached $9.29 billion, exceeding the $9.05 billion estimate [4] Business Segment Performance - Consumer & Community Banking - Card Services & Auto revenue was $6.91 billion, a 14.1% YoY increase and above the $6.23 billion estimate [4] - Commercial & Investment Bank revenue reached $17.60 billion, surpassing the $17.22 billion estimate [4] - Payments revenue within Commercial & Investment Bank was $4.70 billion, exceeding the $4.45 billion estimate [4] - Fixed Income Markets revenue was $5.01 billion, above the $4.45 billion estimate [4] - Home Lending revenue in Consumer & Community Banking was $1.30 billion, an 11.7% YoY increase and above the $1.19 billion estimate [4] Stock Performance - JPMorgan Chase & Co shares returned +3.8% over the past month, outperforming the Zacks S&P 500 composite's -3.3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

JPMorgan Chase & Co. (NYSE: JPM ) just delivered another blowout quarter for Q4 with a ROTCE of 21% in a supposedly seasonally weak quarter. The quarter's star has been the FICC trading, driven by increased volatility and a steepening yieldIndependent banking research focuses on financials, deep value, special situations, and financial arbitrage. Agnostic and apolitical approach for scouring the earth for durable and uncorrelated cashflows that work well in both inflationary and deflationary settings.See my ...

Earnings Performance - JPMorgan Chase & Co reported quarterly earnings of $4 81 per share, beating the Zacks Consensus Estimate of $4 03 per share, representing a 19 35% earnings surprise [1] - The company's earnings of $4 81 per share compare favorably to the $3 97 per share reported a year ago [1] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates [2] Revenue Performance - JPMorgan Chase & Co posted revenues of $42 77 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4 43% [2] - This revenue figure represents an increase from the year-ago revenues of $38 57 billion [2] - The company has topped consensus revenue estimates in each of the last four quarters [2] Stock Performance and Market Comparison - JPMorgan Chase & Co shares have gained approximately 3 2% since the beginning of the year, outperforming the S&P 500's decline of -0 7% [3] - The company's stock is expected to continue outperforming the market in the near future, supported by a Zacks Rank 2 (Buy) rating [6] Future Earnings and Revenue Expectations - The current consensus EPS estimate for the coming quarter is $4 28 on $42 3 billion in revenues [7] - For the current fiscal year, the consensus EPS estimate is $17 01 on $168 7 billion in revenues [7] Industry Outlook - The Financial - Investment Bank industry, to which JPMorgan Chase & Co belongs, is currently ranked in the top 5% of the Zacks industries [8] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Peer Performance - Raymond James Financial, Inc (RJF), another company in the same industry, is expected to report quarterly earnings of $2 75 per share, representing a year-over-year increase of 14 6% [9] - RJF's revenues are anticipated to be $3 47 billion, up 15 2% from the year-ago quarter [10]

About the Author and Publisher - Oliver Haill has been writing about companies and markets since the early 2000s, with a focus on AIM companies and small caps before transitioning to roles as a section editor and head of research [1] - Proactive provides fast, accessible, and actionable business and finance news content to a global investment audience, produced independently by experienced and qualified news journalists [2] - The company has bureaus and studios in key finance hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Expertise and Coverage - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The team delivers news and unique insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Use of Technology - Proactive is a forward-looking and enthusiastic adopter of technology, equipping its human content creators with decades of expertise and experience [4] - The company occasionally uses automation and software tools, including generative AI, but all content is ultimately edited and authored by humans in line with best practices for content production and SEO [5]