JPMorgan beats profit estimates on better-than-expected credit score, trading revenue

Jamie Dimon, CEO of JP Morgan Chase, seems on CNBC’s Squawk Box on the 2020 World Economic Forum in Davos, Switzerland on Jan. 22nd, 2020.

Adam Galica | CNBC

JPMorgan Chase beat analysts’ estimates for fourth-quarter profit on better-than-expected trading outcomes and a lift from releasing cash beforehand put aside for mortgage losses.

The firm posted earnings of $3.79 a share, exceeding the $2.62 per share estimate of analysts surveyed by Refinitiv. The financial institution would’ve beat estimates even with out the 72 cent EPS increase from credit-reserve releases. The agency generated $30.16 billion in revenue, exceeding the $28.7 billion estimate.

“While positive vaccine and stimulus developments contributed to these reserve releases this quarter, our credit reserves of over $30 billion continue to reflect significant near-term economic uncertainty and will allow us to withstand an economic environment far worse than the current base forecasts by most economists,” CEO Jamie Dimon stated in a press release.

A brilliant spot in 2020 for Wall Street has been trading, which is anticipated to be the perfect yr because the monetary disaster by way of whole revenues, due to the Federal Reserve’s unprecedented actions to prop up markets. Investment bankers additionally benefited as wide-open markets introduced surging demand for IPOs and a report spate of debt issuance.

Last month, CEO Jamie Dimon stated he anticipated fourth-quarter trading and funding banking revenue to be 20% increased than a yr earlier.

Analysts might ask Dimon about succession planning after a well being scare he had final yr. While broadly reported that Dimon had coronary heart surgical procedure final March, he solely just lately informed the Wall Street Journal that his situation was so precarious he thought he “might not make it.”

Analysts can even be curious concerning the tempo of share repurchases the financial institution is anticipating to make. JPMorgan introduced a $30 billion share repurchase program final month after the Federal Reserve stated that the business may restart buybacks within the first quarter.

Shares of JPMorgan slipped 8.7% final yr, in comparison with the 4.3% decline of the KBW Bank Index.

Here are the numbers:

  • Earnings: $3.79 a share, vs. $2.62 per share estimate, in line with Refinitiv.
  • Revenue: $30.16 billion, vs. $28.70 billion anticipated, in line with Refinitiv.

    This story is creating. Please examine again for updates.

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Written by Business Boy


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