REUTERS/Dylan Martinez
- JPMorgan Chase reported fourth-quarter earnings Tuesday that beat analysts’ revenue and profit expectations, reflecting strong gains in its corporate and investment bank and asset and wealth management divisions.
- The bank’s shares climbed 1.9% in premarket trading.
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JPMorgan Chase posted $2.57 in fourth-quarter earnings per share, outpacing the $2.36 figure that Wall Street analysts surveyed by Bloomberg were expecting. Corporate and investment bank revenues jumped 31%, and wealth and asset management revenue climbed 8%.
The bank’s shares climbed 1.9% in premarket trading as investors cheered the outperformance and positive outlook by CEO Jamie Dimon.
Here are the key numbers:
- Net income: $8.52 billion versus the $7.54 billion estimate
- Earnings per share: $2.57 versus the $2.36 estimate
- Revenue: $28.3 billion versus the $27.9 billion estimate
“JPMorgan Chase produced strong results in the fourth quarter of 2019, capping off a solid year for the Firm where we achieved many records, including record revenue and net income,” Dimon said in the earnings release.
“While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year,” he added.
JPMorgan’s net revenue rose 9% to $29.2 billion as a 21% spike in noninterest revenue offset a 2% slide in net interest income due to lower interest rates. Noninterest revenue benefited from higher sales across the bank’s fixed income, equity markets, asset and wealth management, home lending, and auto operations.
The corporate and investment bank generated record revenue in the quarter, Dimon said, and its full-year wallet share of investment banking fees hit its highest level in a decade. The division’s net revenue jumped 31% to about $9.5 billion and net income soared 48% to $2.9 billion in the quarter. The strong growth reflected an 86% spike in fixed income markets revenue to $3.4 billion and a 15% rise in equity markets revenue to $1.5 billion.
The consumer and community banking division reported higher net revenue and net income due to higher auto lease volumes and an increase in net interest income from its card business.
The asset and wealth management division also grew net revenue and net income, reflecting higher investment valuations and average market levels, as well as deposit and loan growth. It also brought in record long-term net flows of $100 billion in 2019, Dimon said.
The commercial banking segment earned a record $2.7 billion of investment banking revenue in 2019, Dimon said. However, it registered declines in both net revenue and net income in the fourth quarter as lower deposit margins hurt net interest income.
