You might also like
JPMorgan Chase & Co. is a leading financial services firm based in the United States with a global presence, offering a wide range of products and services across various segments . The company is organized into four major business segments, each catering to different client needs, including consumer banking, investment banking, commercial banking, and asset management . Through its diversified business model, JPMorgan Chase serves a broad spectrum of clients worldwide, leveraging its strong market positions to drive revenue growth and maintain a competitive edge in the financial services industry .
-
Consumer & Community Banking (CCB) - Provides products and services to consumers and small businesses through bank branches, ATMs, digital platforms, and telephone banking, including Banking & Wealth Management, Home Lending, and Card Services & Auto .
- Banking & Wealth Management - Offers banking services and wealth management solutions to individual and small business clients .
- Home Lending - Provides mortgage and home equity lending services .
- Card Services & Auto - Offers credit card services and auto financing .
-
Corporate & Investment Bank (CIB) - Offers investment banking, lending, payments, market-making, financing, custody, and securities products and services to corporate and institutional clients globally .
-
Asset & Wealth Management (AWM) - Provides investment management solutions across equities, fixed income, alternatives, and money market funds to institutional and retail investors, along with retirement products, brokerage, custody, trusts, and estate services to high-net-worth clients .
-
Commercial Banking (CB) - Delivers comprehensive financial solutions, including lending, payments, and investment banking services, primarily to middle-market clients, small and mid-sized companies, and commercial real estate clients .
-
Given the increasing competition from private credit firms and changes in market structure, how is JPMorgan planning to adjust its strategies to maintain its competitive edge in market-making and traditional lending, especially when non-bank entities are not constrained by the same regulations?
-
With Banking & Wealth Management revenue declining by 11% year-on-year due to deposit margin compression and lower deposits, what specific actions is JPMorgan taking to mitigate these pressures and reverse the trend of decreasing deposits, which are down 8% year-on-year?
-
Despite having at least $30 billion of excess capital, why is JPMorgan choosing to be patient in deploying this capital, and how does this decision align with your long-term growth and shareholder return objectives in a potentially turbulent market environment?
-
Considering the uncertainty surrounding the final Basel III capital requirements and your stance that current requirements may already be more than needed, how will this impact your capital planning, lending practices, and overall competitiveness, especially if regulations push more activities outside the banking sector?
-
Jamie, you've expressed significant interest in government policy and its impact on the economy; under what circumstances, if any, would you consider transitioning from your role at JPMorgan to a government position, and how do you manage this interest alongside your commitment to the company?
Competitors mentioned in the company's latest 10K filing.
- Other banks
- Brokerage firms
- Investment banking companies
- Merchant banks
- Hedge funds
- Commodity trading companies
- Private equity firms
- Insurance companies
- Mutual fund companies
- Investment managers
- Credit card companies
- Mortgage banking companies
- Trust companies
- Securities processing companies
- Automobile financing companies
- Leasing companies
- E-commerce and other internet-based companies
- Financial technology companies
- Non-financial companies offering products and services that disintermediate traditional banking products and services .
Recent developments and announcements about JPM.
Financial Reporting
- Revenue and Profit Performance: The firm saw significant growth in various sectors, including a 21% increase in Markets revenue and a 49% rise in Investment Banking fees, ranking #1 with a wallet share of 9.3% for 2024.
- Management’s Forward Guidance: JPMorgan expects net interest income (NII) to normalize in 2025, with a projected NII ex Markets of approximately $90 billion, assuming rates follow the forward curve.
- Strategic Initiatives: The company continues to focus on expanding its Consumer Banking business globally, despite the risks associated with such initiatives.
- Market Conditions: The firm remains optimistic about its Investment Banking pipeline, driven by favorable market conditions and large deals.
- Analyst Questions and Management Responses: Analysts inquired about loan growth and the impact of quantitative tightening (QT) on the firm. Management noted that while business sentiment has improved, significant loan growth has not yet materialized, and they expect QT to complete by mid-year.
- Net Income: $14.0 billion, up 50% year-over-year (YoY) from $9.3 billion in Q4 2023.
- Diluted Earnings Per Share (EPS): $4.81, up 58% YoY from $3.04 in Q4 2023.
- Net Revenue (Managed Basis): $43.7 billion, up 10% YoY.
- Return on Common Equity (ROE): 17%.
- Return on Tangible Common Equity (ROTCE): 21% , ,.
- Net Revenue: $18.4 billion, up 1% YoY.
- Card Services & Auto: Revenue increased 14%, driven by higher revolving balances and card income.
- Home Lending: Revenue rose 12%, supported by higher production revenue.
- Net Income: $4.5 billion, down 6% YoY.
- ROE: 32%.
- Active Mobile Customers: Increased 7% YoY to 57.8 million , ,.
- Net Revenue: $17.6 billion, up 18% YoY.
- Investment Banking Fees: Up 49%, driven by higher fees across all products.
- Markets Revenue: $7.0 billion, up 21%, with Fixed Income Markets up 20% and Equity Markets up 22%.
- Net Income: $6.6 billion, up 59% YoY.
- ROE: 19% , ,.
- Net Revenue: $5.8 billion, up 13% YoY, driven by higher management fees and strong net inflows.
- Net Income: $1.5 billion, up 25% YoY.
- Assets Under Management (AUM): $4.0 trillion, up 18% YoY.
- ROE: 38% , ,.
- Net Revenue: $2.0 billion, up 13% YoY.
- Net Income: $1.3 billion, compared to a net loss of $875 million in Q4 2023 ,.
- Net Interest Income: $23.5 billion, down 3% YoY, impacted by lower rates and deposit margin compression.
- Noninterest Revenue: $20.3 billion, up 29% YoY, driven by higher asset management and investment banking fees.
- Provision for Credit Losses: $2.6 billion, reflecting net charge-offs of $2.4 billion and a net reserve build of $267 million ,.
- Net Income: Record $58.5 billion, up 18% YoY.
- Diluted EPS: $19.75, up 22% YoY.
- Managed Revenue: $180.6 billion, up 11% YoY ,.
Earnings Call
JPMorgan Chase recently released its earnings call transcript, reporting a strong financial performance for the fourth quarter and the full year 2024. The firm achieved a net income of $14 billion for the quarter, with earnings per share (EPS) of $4.81 and revenue of $43.7 billion, marking a 10% increase year-on-year. For the full year, JPMorgan reported a net income of $54 billion, EPS of $18.22, and revenue of $173 billion, with a return on tangible common equity (ROTCE) of 20%.
Key highlights from the earnings call include:
Overall, JPMorgan Chase demonstrated robust financial health and strategic foresight, positioning itself well for future growth despite the challenging economic environment.
Earnings Report
JPMorgan Chase & Co. (JPM) Fourth Quarter 2024 Earnings Results
JPMorgan Chase & Co. has released its earnings results for the fourth quarter of 2024, showcasing strong financial performance across various metrics:
Key Highlights:
Segment Performance:
Consumer & Community Banking (CCB):
Commercial & Investment Bank (CIB):
Asset & Wealth Management (AWM):
Corporate:
Trends and Observations:
Full-Year 2024 Highlights:
JPMorgan Chase continues to demonstrate robust financial performance, driven by diversified revenue streams and strong execution across its business segments.
Source(s): , , , ,
Corporate Leadership
Leadership Change
Daniel Pinto is leaving his role as President and Chief Operating Officer of JPMorgan Chase, effective June 30, 2025, as he plans to retire at the end of 2026. He will continue to serve as Vice Chairman, advising on key projects and client relationships. Jennifer Piepszak has been appointed as the new Chief Operating Officer, effective immediately. She will manage various corporate functions and oversee global corporate centers. Doug Petno will succeed Piepszak as Co-Chief Executive Officer of the Commercial & Investment Bank, and John Simmons will take over Petno's previous role.