JPMorgan Chase & Co. (NYSE: JPM) has reported record-high revenue and profit for fiscal 2024, while continuing to expand its global footprint by optimizing operational efficiency and improving customer engagement. The banking giant’s upcoming earnings report is expected to elicit significant investor interest amid concerns about the potential economic fallout from the newly imposed import tariffs.
After pulling back from the all-time highs of mid-February, JP Morgan’s stock declined steadily and slipped to a six-month low this week. The latest selloff aligns with the general market downturn, triggered by the new import tariffs imposed by the Trump administration. However, the stock’s last closing price is around 12% higher than its level 12 months ago. The relatively lower price has created a rare opportunity to invest in this financial service behemoth of immense scale and strong fundamentals.
Q1 Report Due
The bank is expected to report first-quarter 2025 results on Friday, April 11, at 6:55 am ET. Wall Street’s consensus earnings estimate for the quarter is $4.66 per share, compared to $4.44 per share in Q1 2024. Analysts forecast a 5% year-over-year increase in March-quarter revenues to $44.06 billion. Revenue and profit have consistently beaten estimates since Q3 2022.
JP Morgan’s highly diversified financial services portfolio and elite clientele give it a competitive advantage over others. The scale of the business allows the company to benefit from the lock-in effect where customers — both individual and institutional — signing up for a particular service often rely on the ecosystem for additional services. In a recent statement, the management said it expects net interest income to continue to normalize in fiscal 2025, although to a lesser extent than estimated earlier.
JPM CFO Jeremy Barnum said in the Q4 earnings call, “…2024 was another year of record revenue and net income, and we’re proud of what we accomplished. As we look ahead to 2025, we still expect NII normalization, although to a lesser extent than we previously thought. And taking a step back, we think it’s important to acknowledge the tension between the risks and uncertainties in the environment and the degree of optimism embedded in asset prices and expectations. In that context, we remain upbeat about the strength of the franchise, but we are focused on being prepared for a wide range of scenarios.“
Profit Climbs
In the final three months of fiscal 2024, net revenue increased 11% from the prior year to $42.7 billion. At $43.7 billion, managed net revenue was up 10%. As a result, Q4 net income grew sharply to $14 billion or $4.81 per share from $9.3 billion or $3.04 per share in the year-ago quarter. Both revenue and earnings beat estimates. Net interest income was $23.5 billion in the December quarter, down 3%, while noninterest revenue rose 29% to $20.3 billion. Non-interest expense was $22.8 billion, which represents a 7% YoY decrease.
The bank’s stock has lost 24% since setting a record around one-and-half month ago. JPM traded down 7% on Friday afternoon, extending the downtrend experienced in the previous sessions.
