JPMorgan Chase & Co. (NYSE: JPM) continues to expand its global footprint by reporting record revenue and profits for 2024, optimizing operational efficiencies and improving customer engagement. The bank’s future revenue reports are expected to derive substantial investors’ benefits amid concerns about potential economic fallout from newly imposed import duties.
After pulling back from its all-time high in mid-February, JP Morgan’s stock has steadily declined, sliding to its six-month low this week. The latest selling coincides with the general market slump caused by new import duties imposed by the Trump administration. However, the stock’s final closing price is about 12% higher than its level 12 months ago. The relatively low prices have created rare opportunities to invest in the huge scale and powerful foundation giants of this financial service.
Q1 Report deadline
The bank is scheduled to report its results for the 2025 quarter on Friday, April 11th at 6:55am ET. Wall Street’s quarterly consensus earnings estimate is $4.66 per share compared to $4.44 per share in the first quarter of 2024. Analysts forecast revenues for March will increase by 5% year-on-year to $440.6 billion. Since the third quarter of 2022, revenue and profit have consistently broken estimates.
JP Morgan’s highly diversified financial services portfolio and elite clients give them a competitive advantage over others. The size of the business allows a company to benefit from the lock-in effect when customers sign up for a particular service often rely on the ecosystem for additional services. In a recent statement, management said it expects net interest income to continue to be normalized for fiscal year 2025, but to a lesser extent than previous estimates.
JPM CFO Jeremy Barnum said in its fourth quarter revenue call. “…2024 is another year of record revenue and net profits and we are proud to have achieved. As we look ahead to 2025, we still anticipate normalization of the NII, but not to a lower level than we previously thought. It’s a franchise, but focuses on preparing for a wide range of scenarios.“
Profits will rise
In the last three months of fiscal 2024, net revenues rose 11% from the previous year to $42.7 billion. Managed net revenues increased 10% at $43.7 billion. As a result, net income for the fourth quarter increased to $14 billion or $4.81 per share from $9.3 billion or $3.04 per share in the same period last year. Both revenue and revenue exceed estimates. Net interest income fell 3% to $23.5 billion in the December quarter, while non-profit revenue rose 29% to $20.3 billion. Non-profit expenses were $22.8 billion, representing a 7% year-over-year decline.
Bank stocks have lost 24% since setting records about a month ago. JPM fell 7% on Friday afternoon, extending the downtrend experienced in previous sessions.
