JPMorgan Chase (JPM) Earnings Q4 2022

Jamie Dimon, Chairman and Chief Executive Officer of JPMorgan Chase & Co., speaks at the Annual Membership Meeting of the Institute of International Finance (IIF) in Washington, DC, USA, Thursday, October 13, 2022 .

Ting Shen | Bloomberg | Bloomberg | Getty Images

JP Morgan Chase Earnings and earnings at banks surged 48% Friday on higher interest rates and higher loans, boosting fourth-quarter profits and earnings above expectations.

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  • Earnings per share were $3.57, according to Refinitiv, beating expectations of $3.07 after excluding one-off items.
  • Revenue of $35.57 billion against an estimated $34.3 billion

New York based bank Said Earnings were $11.01 billion, or $3.57 per share, up 6% from the prior year period. Revenue increased 17% to $35.57 billion. That’s because net interest income increased to his $20.3 billion, beating StreetAccount’s estimate by $1 billion, and average loans increased 6%.

However, banks posted $2.3 billion of loan loss reserves in the third quarter. That’s a 49% increase for him from the third quarter, beating StreetAccount’s estimate of his $1.96 billion. The company’s stock fell 1.1% in morning trading.

The move was driven by “the company’s slightly worsening macroeconomic outlook, which now reflects a moderate recession in the middle case,” and loan growth from customers using Chase’s credit cards. It has, said the bank.

A recession that could push the US unemployment rate to 4.9% is forecast by economists at JP Morgan in the fourth quarter of this year, CFO Jeremy Barnum said at a news conference on Friday.

The company’s credit surge outpaced rival giants bank of america When wells fargoand the rate of increase in each quarter is small.

CEO of JP Morgan Jamie Dimon On Friday, he said the U.S. economy “remains strong today” thanks to well-funded consumers and businesses, pointing to a range of risks to its outlook.

“The ultimate impact of headwinds from geopolitical tensions such as the war in Ukraine, fragile energy and food supplies, persistent inflation eroding purchasing power and pushing up interest rates, and unprecedented quantitative tightening will be We don’t know yet,” said Damon.

Quantitative tightening refers to moves by central banks to shrink their balance sheets by halting or reversing previous bond-buying programs.

JP Morgan, the largest U.S. bank by assets, is being watched for clues about how the industry is navigating an economy at a crossroads.

Analysts had expected mixed trends from banks. Rising interest rates help lenders earn more interest income, but the increase was partially offset by higher reserves for expected credit losses as the economy slowed.

Dimon said last year that the economic “hurricane” Caused by the Federal Reserve heading to the United States

JPMorgan shares are up 4% this year, and the KBW Bank Index is up 6%.

Bank of America, Wells Fargo, city ​​groupannounced the results on Friday, goldman sachs When Morgan Stanley We will report on Tuesday.

This story is a work in progress. Please check the latest information. JPMorgan Chase (JPM) Earnings Q4 2022

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