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JPM earnings 4Q 2021

JP Morgan CEO Jamie Dimon listens as he’s launched on the Boston College Chief Executives Club luncheon in Boston, Massachusetts, U.S., November 23, 2021.

Brian Snyder | Reuters

JPMorgan Chase posted revenue that exceeded analysts’ expectations on a profit from better-than-expected credit score losses and as mortgage development returned to elements of the corporations’ business.

Here are the numbers:

  • Earnings: $3.33 a share, vs. estimate $3.01, based on Refinitiv.
  • Revenue: $30.35 billion, vs. estimate $29.9 billion.

Government stimulus packages in the course of the pandemic left shoppers and companies flush, leading to stagnant mortgage development and prompting CEO Jamie Dimon to say final year that mortgage development was “challenged.”

But analysts have pointed to a rebound within the fourth quarter, pushed by demand from firms and bank card debtors. They’ll wish to see that present up in JPMorgan’s outcomes, as that, together with the Federal Reserve’s anticipated rate hikes, are two major drivers of the business’s profitability.

Analysts can also ask the financial institution in regards to the affect of its current resolution to rein in overdraft charges. JPMorgan mentioned final month that it might give clients a grace interval to keep away from the punitive charges, a transfer that together with different adjustments can have a “not insignificant” hit to income.

JPMorgan chief working officer Daniel Pinto mentioned final month throughout a convention that fourth-quarter buying and selling income was headed for a 10% drop, pushed by a decline in fastened earnings exercise from file ranges. Offsetting that’s an anticipated 35% leap in funding banking charges, he mentioned.

The financial institution was compelled to pay $200 million in fines final month to settle prices that its Wall Street division allowed employees to make use of messaging apps to bypass file holding legal guidelines.  

Shares of JPMorgan have climbed 6.2% this year, lagging the 11.6% rise of the KBW Bank Index.  

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