In This Article:
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Net Income: $14 billion for Q4 2024.
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Earnings Per Share (EPS): $4.81 for Q4 2024.
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Revenue: $43.7 billion for Q4 2024, up 10% year-on-year.
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Return on Tangible Common Equity (ROTCE): 21% for Q4 2024.
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Net Interest Income (NII) ex Markets: Down $548 million or 2% for Q4 2024.
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Expenses: $22.8 billion for Q4 2024, down 7% year-on-year.
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Credit Costs: $2.6 billion for Q4 2024.
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CET1 Ratio: 15.7% at the end of Q4 2024.
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CCB Revenue: $18.4 billion for Q4 2024, up 1% year-on-year.
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CIB Revenue: $17.6 billion for Q4 2024.
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AWM Revenue: $5.8 billion for Q4 2024, up 13% year-on-year.
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Corporate Revenue: $2 billion for Q4 2024, up $223 million year-on-year.
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Full Year Net Income: $54 billion for 2024.
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Full Year EPS: $18.22 for 2024.
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Full Year Revenue: $173 billion for 2024.
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Full Year ROTCE: 20% for 2024.
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Client Asset Net Inflows: $468 billion for 2024.
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Assets Under Management (AUM): $4 trillion, up 18% year-on-year.
Release Date: January 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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JPMorgan Chase & Co (NYSE:JPM) reported a strong net income of $14 billion for the fourth quarter of 2024, with an EPS of $4.81.
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The firm achieved a 10% year-on-year increase in revenue, reaching $43.7 billion.
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Record revenue was reported in markets, payments, and securities services within the Corporate & Investment Bank (CIB) segment.
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Asset & Wealth Management (AWM) saw record long-term net inflows of $234 billion, positive across all channels, regions, and asset classes.
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The CET1 ratio improved to 15.7%, up 40 basis points from the previous quarter, indicating strong capital management.
Negative Points
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Net interest income (NII) excluding markets was down $548 million or 2% due to lower rates and deposit margin compression.
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Expenses increased by $1.2 billion or 5% year-on-year, driven by compensation and higher brokerage and distribution fees.
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Credit costs were $2.6 billion, reflecting net charge-offs of $2.4 billion and a net reserve build of $267 million.
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Average banking and payments loans were down 2% year-on-year and down 1% sequentially, indicating a decline in lending activity.
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The firm faces uncertainties in the regulatory environment, which could impact capital requirements and operational strategies.
Q & A Highlights
Q: Jeremy, how does JPMorgan Chase plan to manage its growing capital base, and what are the implications for capital deployment? A: Jeremy Barnum, CFO, explained that the firm is comfortable with having extra capital given the current environment, anticipating better deployment opportunities in the future. However, they have concluded that they have enough excess capital and aim to prevent further growth of this excess. This implies more capital return through buybacks unless new opportunities for organic deployment arise.