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pww.comJPMorgan Chase & Co., Q3 2024 Earnings Call, Oct 11, 2024 - NYSE:JPM

NYSE:JPM

Jeremy Barnum [Executive VP & CFO] 💬

**- JPMorgan Chase & Co. reported net income of $12.9 billion, EPS of $4.37 on revenue of $43.3 billion with an ROTCE of 19%

  • Revenue was up $2.6 billion or 6% year-on-year, driven by NII ex Markets, higher asset management, and Investment Banking fees, and Markets revenue

  • Expenses were up $808 million or 4% year-on-year, driven by compensation and growth in employees, partially offset by lower legal expense

  • Credit costs were $3.1 billion, reflecting net charge-offs of $2.1 billion and a net reserve build of $1 billion

  • CET1 ratio was 15.3%, flat versus the prior quarter, with $6 billion of net common share repurchases this quarter

  • CCB reported net income of $4 billion on revenue of $17.8 billion, down 3% year-on-year, with a slowdown in customer yield-seeking activity

  • CIB reported net income of $5.7 billion on revenue of $17 billion, with IB fees up 31% year-on-year and advisory fees up 10%

  • Markets revenue was $7.2 billion, up 8% year-on-year, with Fixed Income flat and Equities up 27%

  • AWM reported net income of $1.4 billion, with revenue up 9% year-on-year driven by management fees, investment valuation gains, and higher brokerage activity

  • Corporate reported net income of $1.8 billion, with revenue up $1.5 billion year-on-year, driven by higher NII and NIR

  • NII ex Markets for 2024 is expected to be approximately $91.5 billion, with total NII expected to be approximately $92.5 billion

  • Credit costs for 2024 Card net charge-off rate are expected to be approximately 3.4%

  • The firm expects 2024 NII ex Markets to be approximately $91.5 billion and total NII to be approximately $92.5 billion

  • Expenses for 2024 are expected to be about $91.5 billion, with a focus on investment in growth strategies and technology

  • The firm is cautious about the yield curve and expects a trough in NII ex Markets in the middle of 2025

  • The firm is preparing for potential market liquidity shocks and the end of QT, which could impact deposit balances and NII

  • The firm is committed to serving clients and deploying capital in a disciplined manner, focusing on long-term growth and returns**

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