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JPMorgan Chase & Co. (NYSE:JPM) shares are trading nearly flat premarket after it reported fourth-quarter FY24 results.
Reported revenue rose 11% year-on-year to $42.8 billion. Net revenue (managed) was $43.7 billion (+10% Y/Y), beating the consensus of $41.707 billion.
Consumer & Community Banking (CCB) revenue rose 1% Y/Y to $18.362 billion, and Commercial & Investment Bank revenue was $17.598 billion (+18% Y/Y) in the quarter.
Investment Banking revenue was $2.6 billion, up 46% Y/Y, in the quarter. Investment Banking fees rose 49% Y/Y, led by higher fees across all products.
Asset and Wealth Management revenue was $5.8 billion (+13% Y/Y), and Corporate revenue stood at $2.00 billion (+13% Y/Y) in the quarter.
In AWM, Assets under management stood at $4.0 trillion, and client assets stood at $5.9 trillion (up 18%), driven by higher market levels and continued net inflows.
Net interest income fell 3% Y/Y to $23.5 billion in the quarter. Net interest income excluding Markets stood at $23.0 billion, down 2% Y/Y, due to lower rates and deposit margin compression along with lower deposit balances in CCB.
Noninterest revenue was $20.3 billion, up 29% Y/Y, in the quarter. Noninterest revenue, excluding Markets, increased 30% Y/Y to $13.7 billion, led by higher asset management fees in AWM and CCB, increased investment banking fees and lower net investment securities losses.
Noninterest expense decreased 7% Y/Y to $22.8 billion in the quarter. Average loans rose 2% Y/Y and up 1% quarter-over-quarter; average deposits were up 2% Y/Y and 1% Q/Q.
In CCB, Debit and credit card sales volume increased by 8% Y/Y, and active mobile customers were up 7% Y/Y.
In CIB, Market revenue rose 21% Y/Y, with Fixed Income Markets increasing 20% and Equity Markets up 22% in the quarter.
JPM’s provision for credit losses was $2.6 billion (-5% Y/Y), including net charge-offs of $2.4 billion and a net reserve build of $267 million.
Net income rose 50% Y/Y to $14.0 billion in the quarter. EPS of $4.81 exceeded the consensus of $4.11.
The CET1 capital ratio stood at 15.7%, and the advanced CET1 capital ratio was 15.8%. The bank’s capital distributions included a dividend per share of $1.25 and $4.0 billion of common stock net repurchases.