Key Takeaways from JPMorgan's Earnings: Net Interest Income Hits Record High
$JPMorgan (JPM.US)$ achieved unprecedented profit levels, despite experiencing a downturn in the last quarter due to a one-time hit of roughly $3 billion to pay for a special assessment charged by the Federal Deposit Insurance Corporation.
The company announced on Friday that it had generated a historic $49.6 billion in net income over the year, setting a new record for the American banking sector. This milestone was reached amidst one of the most tumultuous years for the industry since the 2008 financial crisis. This impressive performance, which was 31% higher than its 2022 profits, was propelled by improved loan margins and the strategic acquisition of the faltering regional bank First Republic.
JPMorgan's annual net income outpaced that of $Bank of America (BAC.US)$ by $23 billion, $Wells Fargo & Co (WFC.US)$ by $30 billion, and $Citigroup (C.US)$ by $40 billion. Following the news, JPMorgan's stock, which had recently hit a record high, saw an increase of over 2% in pre-market trading. In contrast, shares of both Bank of America and Wells Fargo experienced declines.
Key charts:
JP Morgan Chase's net interest income hit a record high even though deposit levels haven’t returned to 2021 levels. It shows that the impact of interest rate hikes on banks seems to be positive at this stage.
Non-performing loans reversed their upward trend and fell in the 4th quarter.
For prudent purposes, JPMorgan slightly increases loan loss provisions.
However, investment banking and Sales & Trading income is still far from rebounding.
In general, JPM's performance shows that the asset quality of the US citizens has not deteriorated, due to the positive impact of residents' increased income and asset appreciation.
Relative article:
Source: Yahoo Finance
By Moomoo US Calvin
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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