Bank AI

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<p class="has-drop-cap">JPMorgan Chase &amp; Co (NYSE: JPM) reported lower-than-expected revenue in the fourth quarter, but full-year profit and revenue marked record results, fueled by a seventh quarter of record net interest income. Several other Wall Street banks also <a aria-label="unveiled their results (opens in a new tab)" href="https://www.reuters.com/markets/us/futures-subdued-all-eyes-big-bank-earnings-2024-01-12/" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">unveiled their results</a> Friday, showcasing a mixed performance within the sector.</p> 
<h3 id="jpmorgan-reports-record-full-year-profit-and-revenue">JPMorgan Reports Record Full-Year Profit and Revenue</h3> 
<p>JPMorgan Chase announced its fourth-quarter and full-year results on Friday, marking its most profitable year ever. The Wall Street giant said profit in the US plunged 15% from a year earlier to $3.04 in the quarter, missing the consensus estimates of $3.35 per share. Revenue grew 12% from a year ago to $38.57 billion, falling short of the $39.73 billion analysts expected.&nbsp;</p> 
<p>For the full year, however, JPMorgan’s revenue and profit came in at $158.1 billion and $49.55 billion, each representing record results.&nbsp;</p> 
<p>The bank’s net interest rate income fueled the surge, which stood at $24.2 billion in the year’s final quarter. JPMorgan anticipates a potential increase of about $90 billion for 2024, contrary to analysts’ expectations of a 2% decline.</p> 
<blockquote class="wp-block-quote"> 
 <p>“Our record results in 2023 reflect over-earning on both NII and credit, but we remain confident in our ability to continue to deliver very healthy returns even after they normalize.”</p> <cite>– said JPMorgan CEO Jamie Dimon. </cite>
</blockquote> 
<p>The bank’s executives said that lending revenue is exceptionally high due to extremely <a href="https://tokenist.com/fed-continues-relentless-rate-hikes-with-25-bps-despite-bank-trouble/" rel="dofollow" class="deco-link">elevated interest rates</a> and expect it to come down in the future. The net interest margin climbed to 2.81% from 2.72% in Q3.&nbsp;Shares of JPMorgan rose 1.8% in premarket trading Friday after closing 0.4% lower at $170.30 a day earlier.</p> 
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<h3 id="mixed-quarter-for-big-banks-earnings">Mixed Quarter for Big Banks’ Earnings</h3> 
<p>Besides JPMorgan, big banks’ earnings data has been mixed in the latest quarter.</p> 
<p>As its fourth-quarter profit contracted, <a href="https://tokenist.com/robust-quarter-for-bank-of-america-with-0-7-eps-above-expectations/" rel="dofollow" class="deco-link">Bank of America</a> (NYSE: BAC) saw a 2% premarket dip. It was impacted by a $2.1 billion allocation for discontinuing a loan index and replenishing the FDIC’s deposit insurance fund, depleted by regional lender collapses.&nbsp;</p> 
<p>Wells Fargo (NYSE: WFC) reported a profit surge aided by cost-cutting measures, but shares dipped 1.9%.&nbsp;</p> 
<p>Citigroup’s stock (NYSE: C) climbed 4.5% ahead of the market opening, despite a $1.8 billion quarterly loss. Meanwhile, <a href="https://tokenist.com/blackrock-surpasses-expectations-with-9-22-eps-in-latest-quarter/" rel="dofollow" class="deco-link">BlackRock (NYSE: BLK) exceeded Q4 earnings expectations</a> and revealed its foray into private markets by acquiring<a aria-label="acquisition of Global Infrastructure Partners (opens in a new tab)" href="https://www.cnbc.com/2024/01/12/blackrock-buys-infrastructure-investor-global-infrastructure-partners-for-12-billion.html" target="_blank" rel="noreferrer noopener nofollow" class="deco-link"> Global Infrastructure Partners</a>.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe> 
<p><em><strong>With the Fed largely expected to cut interest rates this year, what are your expectations for the broader banking sector? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/jp-morgan-shares-rise-premarket-after-bank-reports-record-profit-year/">JP Morgan Shares Rise Premarket After Bank Reports Record Profit Year</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

JP Morgan Shares Rise Premarket After Bank Reports Record Profit Year

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