JP Morgan Chase CEO Jamie Dimon will appear on CNBC’s Squawk Box on January 22, 2020, during the 2020 World Economic Forum in Davos, Switzerland.
Adam Galica | CNBC
JPMorgan Chase beat analysts’ fourth-quarter profit estimates on better-than-expected trading results and a boost by releasing money previously set aside for loan losses.
The company earned $ 3.79 per share, exceeding the $ 2.62 per share estimate of analysts surveyed by Refinitiv. The bank would have surpassed the estimates, even without the 72 cents yield of the credit reserve. The business generated $ 30.16 billion in revenue, exceeding the $ 28.7 billion estimate.
Here are the numbers:
- Earnings: $ 3.79 per share, versus $ 2.62 per share, according to Refinitiv.
- Revenue: $ 30.16 billion, compared to $ 28.70 billion, according to Refinitiv.
JPMorgan Chase, the first major credit provider to report earnings in the fourth quarter, will be closely monitored for clues as to how the industry is coping with the coronavirus pandemic.
One important question is whether banks, which set aside tens of billions for loan losses last year, are largely prepared to default on loans and may even start releasing reserves.
A bright spot in 2020 for Wall Street traded, which is expected to be the best year since the financial crisis in terms of total revenue, thanks to the Federal Reserve’s unprecedented actions to boost markets. Investment bankers also benefited because the open markets brought the demand for IPOs and a record of debt issuance.
Last month, CEO Jamie Dimon said he expects fourth-quarter revenue to be 20% higher than a year earlier.
Analysts may ask Dimon about succession planning after a health scare he had last year. Although he regularly reported in March that Dimon had undergone heart surgery, he only recently told the Wall Street Journal that his condition was so significant that he thought he might not get it right.
Analysts will also be curious about the rate of share buyback the bank expects. JPMorgan announced a $ 30 billion resale program last month after the Federal Reserve said it could repurchase the industry in the first quarter.
JPMorgan shares fell 8.7% last year compared to the 4.3% drop in the KBW Bank index.
This story unfolds. Please come and check for updates.