JPMorgan Chase & Co. (NYSE: JPM) beat revenue and earnings estimates for the fourth quarter of 2019, allowing the stock to gain 1.9% in premarket hours on Tuesday. The consensus estimate was for earnings of $2.33 per share on revenue of $27.8 billion.
On a reported basis, revenue rose 8% to $28.3 billion from the same period last year. Managed revenue was $29.2 billion, up 9% year-over-year.
Net income rose 21% to $8.5 billion while EPS grew 30% to
$2.57 from last year.
Jamie Dimon, Chairman and CEO, said, “While we face a
continued high level of complex geopolitical issues, global growth stabilized,
albeit at a lower level, and resolution of some trade issues helped support
client and market activity towards the end of the year. The U.S. consumer
continues to be in a strong position and we see the benefits of this across our
consumer businesses.”
Net interest income dropped 2% to $14.3 billion due to lower rates. Non-interest revenue jumped 21% to $14.9 billion, mainly driven by higher revenue in Fixed Income and Equity Markets, Asset & Wealth Management, Home Lending, and Auto. Non-interest expense rose 4% to $16.3 billion, due to higher volume- and revenue-related expense.
Book value per share rose 8% to $75.98 while tangible book
value per share grew 8% to $60.98. Basel III common equity Tier 1 capital ratio
was 12.4%.
In Consumer & Community Banking, net revenues grew 3% year-over-year
to $14 billion. Corporate & Investment Bank revenues increased 31% to $9.5
billion. In Commercial Banking, revenues fell 3% to $2.2 billion due to lower
net interest income and lower deposit margin. Asset & Wealth Management
revenues were $3.7 billion, up 8%, driven by higher investment valuations and average
market levels, as well as by growth in loans and deposits.
JPMorgan’s peers Citigroup (NYSE: C) and Wells Fargo (NYSE: WFC) are also reporting their earnings results today.
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