Jamie Dimon, CEO of JP Morgan Chase, will appear on CNBC’s Squawk Box at the World Economic Forum 2020 in Davos, Switzerland on January 22, 2020.
Adam Galica | CNBC
JPMorgan Chase exceeded analyst estimates for fourth-quarter earnings on better-than-expected trading results and a boost by releasing money previously set aside for credit losses.
The company posted a profit of $ 3.79 per share, more than the estimate of $ 2.62 per share surveyed by Refinitiv analysts. The bank would have surpassed estimates even without the 72 cent EPS boost from credit reserve release. The company generated $ 30.16 billion in revenue, more than its $ 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, versus $ 28.70 billion forecast, according to Refinitiv.
JPMorgan Chase, the first major lender to report fourth-quarter earnings, will be closely watched for clues as to how the industry is weathering the coronavirus pandemic.
An important question is whether banks, which set aside tens of billions for credit losses last year, are largely done preparing for defaulting loans and perhaps even starting to release reserves.
A bright spot in 2020 for Wall Street has been trading, which is expected to be its best year since the financial crisis in terms of total revenues, thanks to the Federal Reserve’s unprecedented moves to support markets. Investment bankers also benefited from the wide open markets that drove rising demand for IPOs and a record wave of debt issues.
Last month, CEO Jamie Dimon said he expected fourth quarter trading and investment banking revenues to be 20% higher than a year earlier.
Analysts may ask Dimon about succession planning after a health scare he suffered last year. Although it was widely reported that Dimon had heart surgery last March, he only recently told the Wall Street Journal that his condition was so precarious that he thought he “ might not make it. ”
Analysts will also be curious about the pace of share buybacks the bank expects. JPMorgan announced a $ 30 billion share buyback program last month after the Federal Reserve said the industry could start buying back again in the first quarter.
JPMorgan shares fell 8.7% last year, compared to the 4.3% decline of the KBW Bank Index.
This story develops. Please check again for updates.