JPMorgan breaks all records
The Wall Street titan reported solid earnings this week. JPMorgan, the largest bank in the US by net assets and market cap, posted Q4 net income of $14 billion, +50% from last year, far above expectations of $11.7 billion.
For the full 2024, JPMorgan pulled in record profits of $59 billion despite the Federal Reserve’s aggressive rate-cutting cycle, which dented the bank’s bottom line on interest from earnings.
source: Yahoo Finance
The figure was up by about 19% year-overe-year.
For the quarter ending December, Earnings per share came in at $4.81, smashing expectations of $4.11.
Revenue of $42.8 billion also landed above estimates of $41.59 billion, while Fees from investment banking marked a huge 49% increase from last year, and trading revenue was up by 21%.
Net interest income—what the bank makes on interest after it pays up on its deposits—dipped 3% to $23.5 billion, which was just enough to keep investors happy, as they expected roughly $23 billion.
Market Cap jumps past $700 Billion
Shares of JPMorgan have risen roughly 50% in the past twelve months. The stock crossed the record valuation of $700 billion, making it the most expensive bank stock out there, by far.
All that helped JPMorgan stock surge above $250 a share this week, an all-time high.
CEO Chairman Jamie Dimon was upbeat on the earnings:
“Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business”.
However, warned that stubborn inflation and fraught geopolitical tensions were key risks to the outlook.
Investors can long JPMorgan using our 2x JPMorgan.
Alternatively, traders can short JPMorgan using our -1x JPMorgan.
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