US bank JP Morgan Chase’s net interest income (NII) for the October-December 2023 (fourth quarter) set a new high for the seventh consecutive quarter. It also predicted that NII for the full year would increase contrary to analysts’ expectations. Full-year profits for 2023 were the highest in U.S. bank history.
According to the company’s financial results announced on the 12th, NII in the fourth quarter reached $24.2 billion (approximately 3.5 trillion yen). He also predicted that NII for the full year of 2024 could increase to about $90 billion. Analysts had expected a 2% decline from the previous year.
Net income for the fourth quarter was $9.3 billion, and for the full year it was $49.6 billion, up 32% from 2022 and surpassing the previous high of $48.3 billion in 2021.
Jamie Dimon CEO
Photographer: Ting Shen/Bloomberg
Chief Executive Officer Jamie Dimon said in a statement: “Our record performance in 2023 reflects excessive earnings in both NII and credit, but even after these normalize, we remain very healthy. We are confident that we can continue to provide returns.”
Expenses in the fourth quarter exceeded analysts’ expectations and rose 29% from a year earlier to $24.5 billion.
U.S. banks’ fourth-quarter results last year include additional contributions to the Federal Deposit Insurance Corporation (FDIC) following the failures of Silicon Valley Bank and Signature Bank. This cost JPMorgan $2.9 billion. Others blame increased costs on increased compensation.posted on the websitepresentationAccording to the company, adjusted costs for the full year of 2024 are expected to be $90 billion.
Markets revenue increased slightly, exceeding analyst expectations. Stock trading revenue fell 8%, while fixed income trading revenue rose 8%. Investment banking revenue rose 13%, but was below expectations. Equity underwriting revenue was higher than expected, but debt underwriting and advisory services fell short of expectations.
Net charge-offs were $2.2 billion, higher than expected. Bad debts increased in the credit card business. The allowance for loan losses increased by $598 million.
Original title:JPMorgan Just Made More Annual Profit Than Any US Bank Ever、JPMorgan Posts Record NII, Predicts Even More for This Year (1)、JPMorgan Posts Record NII and Predicts Even More for This Year(excerpt)
(Add the 4th paragraph onwards)
2024-01-12 12:39:59
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