JP MORGAN CHASE(JPM) - 2024 Q4 - Annual Results

Legal Expenses - Firmwide legal expenses for the full year 2024 were $740 million, compared to $1.4 billion in 2023, representing a 47% decrease[2] Interest-Earning Assets and Loans - Total interest-earning assets for Q4 2024 were $3,571,960 million, a 5% increase compared to Q4 2023[3] - Loans in Q4 2024 increased by 2% to $1,339,378 million compared to Q4 2023[3] - Average interest-earning assets for Q4 2024 were $3.57 trillion, a 5% increase compared to Q4 2023[61] - Total loans in Consumer & Community Banking increased by 1% to $586.354 billion in Q4 2024 compared to Q4 2023[84] - Card Services loans grew by 10% to $233.016 billion in Q4 2024 compared to Q4 2023[84] Deposits and Debt - Interest-bearing deposits in Q4 2024 grew by 5% to $1,793,337 million compared to Q4 2023[3] - Long-term debt increased by 16% to $344,346 million in 2024 compared to 2023[3] - Deposits in Consumer & Community Banking decreased by 3% to $1.056 trillion in Q4 2024 compared to Q4 2023[84] - Long-term debt decreased by 2% to $401,418 million as of Dec 31, 2024, compared to Sep 30, 2024[79] Net Yield and Interest Rate Spread - Net yield on interest-earning assets for 2024 was 2.63%, slightly lower than 2.70% in 2023[3] - Interest rate spread for 2024 was 1.93%, compared to 2.00% in 2023[3] - Net yield on average interest-earning assets excluding Markets was 3.79% in Q4 2024, slightly down from 3.86% in Q4 2023[61] Stockholders' Equity and Capital Ratios - Total stockholders' equity for 2024 was $336,424 million, a 9% increase from 2023[3] - CET1 capital increased by 1% to $275.515 billion in Q4 2024 compared to Q3 2024, and by 10% compared to Q4 2023[81] - CET1 capital ratio improved to 15.7% in Q4 2024, up from 15.3% in Q3 2024[81] - Tier 1 leverage ratio remained stable at 7.2% in Q4 2024 compared to Q3 2024 and Q4 2023[81] Revenue and Income - Other income - reported increased by 76% to $1,225 million in 4Q24 compared to 4Q23[4] - Total noninterest revenue - reported grew by 34% to $19,418 million in 4Q24 compared to 4Q23[4] - Net interest income - reported decreased by 3% to $23,350 million in 4Q24 compared to 4Q23[4] - Total net revenue - reported increased by 11% to $42,768 million in 4Q24 compared to 4Q23[4] - Full-year total net revenue - reported grew by 12% to $177,556 million in 2024 compared to 2023[4] - Full-year 2024 net interest income was $92.58 billion, a 4% increase compared to 2023[61] - Full-year 2024 noninterest revenue was $84.97 billion, a 23% increase compared to 2023[61] - Total net revenue for Q4 2024 was $42.768 billion, an 11% increase compared to Q4 2023[67] - Total net revenue for 2024 reached $177.556 billion, up 12% from $158.104 billion in 2023[70] Net Income and Earnings Per Share - Net income for Q4 2024 increased by 9% to $14,005 million compared to Q3 2024, and by 50% compared to Q4 2023[10] - Full-year net income for 2024 reached $58,471 million, an 18% increase from 2023[10] - Diluted earnings per share for Q4 2024 rose by 10% to $4.81 compared to Q3 2024, and by 58% compared to Q4 2023[10] - Full-year diluted earnings per share for 2024 was $19.75, a 22% increase from 2023[10] - Net income for Q4 2024 was $14.005 billion, a 50% increase compared to Q4 2023[67] - Full-year 2024 net income was $58.471 billion, an 18% increase compared to 2023[67] - Earnings per share (diluted) for Q4 2024 was $4.81, a 58% increase compared to Q4 2023[67] - Net income for the full year 2024 was $58.471 billion, an 18% increase compared to $49.552 billion in 2023[70] Credit Losses and Allowances - Provision for credit losses decreased by 6% to $2.623 billion in Q4 2024 compared to Q3 2024, but increased by 20% compared to Q4 2023[11] - Total allowance for loan losses increased by 3% to $16,511 million in 4Q24 compared to 3Q24, and by 14% compared to 4Q23[24] - Card Services allowance for loan losses increased by 4% to $14,608 million in 4Q24 compared to 3Q24, and by 17% compared to 4Q23[24] - Home Lending allowance for loan losses remained unchanged at $447 million in 4Q24 compared to 3Q24, but decreased by 23% compared to 4Q23[24] - Auto allowance for loan losses remained unchanged at $692 million in 4Q24 compared to 3Q24, but decreased by 7% compared to 4Q23[24] - Total allowance for credit losses increased by 1% to $26.598 billion in 4Q24 compared to 3Q24, and by 8% compared to 4Q23[57] - Credit card allowance increased to $14.6 billion, up 4% from the previous quarter and 17% year-over-year[58] - Wholesale allowance decreased to $7.938 billion, down 2% from the previous quarter and 2% year-over-year[58] - Total allowance for credit losses reached $26.598 billion, up 1% from the previous quarter and 8% year-over-year[58] Digital and Mobile Banking - Active digital customers increased to 70,813 thousand in 4Q24, up 6% YoY[26] - Active mobile customers grew to 57,821 thousand in 4Q24, a 7% increase YoY[26] - Debit and credit card sales volume reached $477.6 billion in 4Q24, up 8% YoY[26] - Total payments transaction volume was $1.6 trillion in 4Q24, a 7% increase YoY[26] Investment Banking and Markets - Investment banking fees increased by 37% to $2.479 billion in 4Q24 compared to 4Q23, contributing to a full-year total of $9.116 billion, up from $6.631 billion in 2023[30] - Fixed Income Markets revenue grew by 5% to $5.006 billion in 4Q24, contributing to a full-year total of $20.066 billion, up from $19.180 billion in 2023[30] - Equity Markets revenue increased by 13% to $2.043 billion in 4Q24, with full-year revenue at $9.941 billion, up from $8.784 billion in 2023[30] - Markets total net revenue for Q4 2024 was $7.05 billion, a 21% increase compared to Q4 2023[61] - Full-year 2024 Markets total net revenue was $30.01 billion, a 7% increase compared to 2023[61] Asset and Wealth Management - Client investment assets rose to $1,087,608 million in 4Q24, up 14% YoY[26] - Total client assets increased to $5.932 trillion in 2024, up 18% from $5.012 trillion in 2023[39] - Assets under management (AUM) grew to $4.045 trillion in 2024, an 18% increase from $3.422 trillion in 2023[39] - Private Banking client assets rose to $1.234 trillion in 2024, a 27% increase from $974 billion in 2023[39] - Global Institutional client assets reached $1.692 trillion in 2024, up 14% from $1.488 trillion in 2023[39] Credit Quality and Delinquencies - Nonaccrual loans increased by 3% to $3,357 million in 4Q24 compared to 3Q24, but decreased by 10% compared to 4Q23[24] - Total net charge-offs increased by 8% to $2,066 million in 4Q24 compared to 3Q24, and by 26% compared to 4Q23[24] - Card Services net charge-offs increased by 5% to $1,862 million in 4Q24 compared to 3Q24, and by 31% compared to 4Q23[24] - Total net charge-off rate increased to 1.44% in 4Q24 from 1.35% in 3Q24 and 1.15% in 4Q23[24] - 30+ day delinquency rate for Card Services remained stable at 2.17% in 4Q24 compared to 3Q24 and 4Q23[24] - 90+ day delinquency rate for Card Services increased to 1.14% in 4Q24 from 1.10% in 3Q24 and 1.05% in 4Q23[24] Compensation and Expenses - Compensation expense decreased by 2% to $4.033 billion in 4Q24 compared to 4Q23, with full-year compensation expense at $18.191 billion, up 6% from 2023[30] - Overhead ratio - reported improved to 53% in 4Q24 from 63% in 4Q23[4] - Compensation expense grew 11% to $51.357 billion in 2024, compared to $46.465 billion in 2023[70] - Technology, communications, and equipment expense increased 6% to $9.831 billion in 2024, up from $9.246 billion in 2023[70] Share Repurchases and Dividends - Total shares of common stock repurchased in Q4 2024 were 18.5 million, a 39% decrease from Q3 2024 but a 22% increase from Q4 2023[10] - Aggregate repurchases of common stock in Q4 2024 amounted to $4,313 million, a 32% decrease from Q3 2024 but an 87% increase from Q4 2023[10] - The average price paid per share of common stock in Q4 2024 was $233.37, an 11% increase from Q3 2024 and a 55% increase from Q4 2023[10] - The dividend payout ratio for Q4 2024 was 26%, down from 28% in Q3 2024[10] - The Board of Directors authorized a new common share repurchase program of $30 billion effective July 1, 2024[10] - Cash dividends declared per share for Q4 2024 remained at $1.25, a 19% increase from Q4 2023[10] FDIC Special Assessment - The FDIC special assessment for Q1 2024 was adjusted to $725 million, down from the $2.9 billion estimate recorded in Q4 2023[17] - An FDIC special assessment of $725 million was recorded in the three months ended March 31, 2024[49] Acquisitions and Mergers - The company acquired certain assets and liabilities of First Republic Bank from the FDIC on May 1, 2023[67] - JPMorgan Chase acquired certain assets and liabilities of First Republic Bank from the FDIC on May 1, 2023[70] - JPMorganChase acquired certain assets and liabilities of First Republic Bank from the FDIC on May 1, 2023[77] Other Financial Metrics - Total assets for 2024 were $4,085,922 million, a 7% increase from 2023[3] - Total assets decreased by 5% to $4,002,814 million in 4Q24 compared to 3Q24, but increased by 3% compared to 4Q23[77] - Total assets decreased by 5% to $4,002,814 million as of Dec 31, 2024, compared to Sep 30, 2024[79] - Loans increased by 1% to $1,347,988 million as of Dec 31, 2024, compared to Sep 30, 2024[79] - Deposits decreased by 1% to $2,406,032 million as of Dec 31, 2024, compared to Sep 30, 2024[79] - Available-for-sale ("AFS") securities increased by 22% to $406,852 million as of Dec 31, 2024, compared to Sep 30, 2024[79] - Held-to-maturity ("HTM") securities decreased by 8% to $274,468 million as of Dec 31, 2024, compared to Sep 30, 2024[79] - Federal funds sold and securities purchased under resale agreements decreased by 25% to $295,001 million as of Dec 31, 2024, compared to Sep 30, 2024[79] - Trading assets: Debt and equity instruments decreased by 22% to $576,817 million as of Dec 31, 2024, compared to Sep 30, 2024[79] - Retained earnings increased by 3% to $376,166 million as of Dec 31, 2024, compared to Sep 30, 2024[79] - Total liabilities decreased by 5% to $3,658,056 million as of Dec 31, 2024, compared to Sep 30, 2024[79] - Adjusted average assets decreased by 1% to $4.070 trillion in Q4 2024 compared to Q3 2024, but increased by 6% compared to Q4 2023[81]