Subscribe for FREE Email Updates & Access To EXCLUSIVE Research!

JP Morgan Releases Q4 Earnings Reports Slow Trading & High Expenses – $JPM $DIA

By John F. Heerdink, Jr.

Reportedly, JPMorgan Chase & Co (JPM) released quarterly earnings, posting a decline in trading revenue, both commercial and consumer loans fell from a year earlier. Net interest income increased 3% in the quarter, bringing JPMorgan’s total 2021 NII haul to $52.3 billion. The bank also reported a reserve release of $1.8 billion in the quarter, of which $1.3 billion fell to the bottom line.

The firm reported a 16% slide in fixed-income trading revenue, worse than the 13.5% decline analysts expected. Expenses increased 11% from a year earlier as compensation costs increased, and the firm expects costs to increase to about $77 billion this year.

“The economy continues to do quite well despite headwinds related to the omicron variant, inflation, and supply-chain bottlenecks. Credit continues to be healthy with exceptionally low net charge-offs, and we remain optimistic on U.S. economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth,” stated Chief Executive Officer Jamie Dimon.

Total trading revenue dropped 11%, higher than the 9% drop analysts expected. While the fixed-income business was the biggest loser, equities revenue also declined, falling 2% to $1.95 billion. M&A fees increased 86% in the fourth quarter, to $1.56 billion, higher than analysts’ estimates, helping push the firm’s net income to $10.4 billion, higher than expectations for $9 billion. The firm also reported a 1% drop in both consumer and business loans from a year earlier.

The bank provided earnings guidance for 2022. It expects net interest income excluding the market’s business to be $50 billion for the full year, higher than in 2021.

JPMorgan Chase & Co (JPM) is a global financial service leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset management, and commercial banking. To learn more about JPMorgan Chase & Co. (JPM) and to continue to track its progress please visit the Vista Partners JPMorgan Chase & Co. Coverage Page.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

Stay Informed! Stay Competitive! Please join us at Vista Partners, receive our FREE email updates throughout the week, and view our exclusive content and research.

(Read Original Story: JPMorgan Falls on Trading Revenue Slump, Muted Loan Growth in Bloomberg)


Subscribe for FREE Email Updates & Access To EXCLUSIVE Research!

Connect with us