JPMorgan beats 4th-quarter revenue and profit estimates — and CEO Jamie Dimon offers a bullish outlook for the US economy
- JPMorgan reported fourth-quarter earnings Friday that beat Wall Street's forecasts.
- However, the bank posted lower profits in three of its four main divisions.
JPMorgan Chase reported fourth-quarter revenues and earnings on Friday that beat Wall Street's forecasts. However, profits slumped in three of its four main divisions.
JPMorgan shares fell as much as 6% on Friday after CFO Jeremy Barnum said on an earnings call that the bank expected headwinds such as higher expenses to mean it undershoots its targeted return on capital of 17%.
The largest US bank reported $30.35 billion in managed revenue and $3.33 in diluted EPS, exceeding Bloomberg consensus estimates of $30.00 billion and $2.99 respectively. It enjoyed a $1.3 billion net benefit from the release of some of the provisions for bad debts it made during the pandemic.
The bank's asset and wealth management business was the standout performer. The segment grew its net income by 46% to $1.1 billion last quarter, reflecting higher management fees and growth in loans and deposits. Moreover, its assets under management swelled 15% to $3.1 trillion.
In contrast, the consumer and community
JPMorgan's corporate and
Finally, the commercial-banking business suffered a 38% drop in net income to $1.3 billion, reflecting lower credit-reserve releases than in the fourth quarter of 2020.
Dimon, whose comments on the markets and the US economy are closely followed, gave an optimistic outlook.
"The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks," Dimon wrote. "We remain optimistic on US economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth."
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