JPMorgan Chase & Co. posted a record annual profit (nearly $50 billion) despite suffering a $3 billion loss in the fourth quarter to replenish the government's deposit insurance fund, Wall Street said. The Giants made the announcement Friday.
The nation's largest financial institution raked in $49.6 billion last year, marking a staggering 31% improvement from its 2022 revenue and beating economists' expectations.
Bank stocks were down less than 1% on Friday.
Chief Executive Jamie Dimon reiterated his view that the economy remains resilient, but warned that inflation could persist longer than expected and interest rates could rise for an extended period of time. .
“It's important to remember that the economy is supported by large government deficit spending and past stimulus packages,” Dimon said.
According to the bank's financial report, this year's record high was due to “loan growth” due to high interest rates, and First Republic, one of three mid-sized financial institutions to fail within two months, It is said that this is due to the acquisition of a bank.
The bank announced Friday that its fourth-quarter profit for the three months ended Dec. 31 was $9.31 billion, or $3.04 per share. The same period last year had sales of $11.01 billion, or $3.57 per share.
However, fourth-quarter profit fell to $9.31 billion, or $3.04 per share, from $11.01 billion, or $3.57 per share, in the year-ago period. It had to come up with $2.9 billion in fees to cover $18 billion in losses. From the failures of Silicon Valley Bank and Signature Bank to the Federal Deposit Insurance Corporation insurance fund.
The special assessment was approved by the FDIC Board of Directors last month. The federal agency announced it would levy an annual levy of 13.4 basis points to protect against the failure of SVB and Signature Bank.
SVB, the tech industry's preferred financial institution, suddenly collapsed in March after facing a cash shortage due to soaring interest rates and the tech industry meltdown, leading many customers to reduce their deposits.
Just days later, regulators shut down Manhattan-based Signature Bank, a major financial institution in the crypto industry, citing “similar systemic risk exceptions,” the FDIC said at the time, citing SVB's collapse. said.
Mr. Dimon said the latest earnings report, released after a tumultuous year in which inflation stubbornly exceeded the Federal Reserve's standards, was “as important to our customers as we always are, through good times and bad.” It's a great example of the value of being there for the sake of others.” With a target of 2%, borrowing costs have been raised to the highest level in 22 years, and mortgage rates have exceeded 8%.
“The market is now expecting a soft landing,” Dimon said in the earnings call.
The remarks come after the 67-year-old bank president told Fox earlier this week that he was “more likely than others not to have a soft landing,” citing the government's record $34.01 debt. This contradicts his comment, “I think so.” Trillion.
Similar FDIC ratings weighed on other major banks, including Bank of America, whose fourth-quarter profit fell 56% to $3.14 billion, compared with analysts' expectations for a 28% decline. It has doubled.
It also noted the FDIC's assessment of this decline and other costs associated with environmental, social, and governance (ESG) financing. ESG themed Corporate bonds.
Separately on Friday, Wells Fargo reported fourth-quarter profit of $20.48 billion, a 2% increase compared to the same period in 2022, although the company's Chief Executive Charlie Scharf ( CEO) attributed this to rising interest rates and a “strong economic environment.”
Despite beating Wall Street expectations, the San Francisco-based bank warned that its net interest income in 2024 could be significantly lower than a year earlier.
Wells Fargo announced that net interest income for the fourth quarter of 2023 was $12.78 billion, down 5% from the same period last year. It added that it could fall by 7-9% this year from $52.4 billion in 2023.
Meanwhile, Citigroup posted a $1.8 billion loss in the fourth quarter, also tied to the bank's failure in 2023 and CEO Jane Fraser's corporate shakeup.
The overhaul is reportedly expected to be fully completed by the end of the first quarter of 2024 and could include slimming down the management team and laying off thousands of employees. There is sex.
Goldman Sachs and Morgan Stanley are scheduled to report their results on Tuesday.
