JP Morgan Chief Jamie Dimon listens as he is introduced at the Boston College Chief Executives’ Lunch in Boston, Massachusetts, USA, on November 23, 2021.
Brian Snyder | Reuters
JPMorgan Chase reported results for the fourth quarter before opening on Friday.
Here are the numbers:
- Earnings: $ 3.33 per share, against an estimated $ 3.01[ads1], according to Refinitiv.
- Revenue: $ 30.35 billion, compared to an estimated $ 29.9 billion.
JPMorgan Chase, the first major bank to report earnings for the fourth quarter, will be closely monitored for signs of an expected increase in lending.
Government stimulus programs during the pandemic caused consumers and businesses to flush, which resulted in stagnant lending growth and led CEO Jamie Dimon to say last year that lending growth was “challenged”.
But analysts have pointed to an upturn in the fourth quarter, driven by demand from companies and credit card lenders. They will see it appear in JPMorgan’s results, since, together with the Federal Reserve’s expected interest rate hikes, they are two primary drivers of industry profitability.
Analysts may also ask the bank about the impact of the recent decision to curb overdraft fees. JPMorgan said last month that it would give customers a deadline to avoid penalties, a move that, along with other changes, will have a “not insignificant” impact on revenue.
JPMorgan’s chief operating officer Daniel Pinto said during a conference last month that trading revenues in the fourth quarter were heading for a fall of 10%, driven by a decline in interest rate activity from record levels. Compensation for this is an expected jump of 35% in investment banking fees, he said.
The bank was forced to pay $ 200 million in fines last month to settle allegations that the Wall Street Department allowed workers to use messaging apps to circumvent record keeping laws.
Shares in JPMorgan have risen 6.2% this year, and are up 11.6% on the KBW Bank Index.
This story is evolving. Please check back for updates.