“Making Money” host Charles Payne said on “The Big Money Show” that this week's bank earnings will provide a glimpse of the stability of the U.S. economy.
JPMorgan Chase & Co. reported its best annual profit on record, with interest income in 2024 meeting expectations, even as quarterly profits were hurt by a $3 billion fee banks levied to replenish the government's deposit insurance fund. I expected it to be better.
The company, the largest financial institution in the United States, acquired failed First Republic Bank in May, bringing with it billions of dollars in loans and net interest income (NII), the income the bank earns on loans and deposits. received the benefit of increasing the amount paid (difference in amount paid).
The bank said it expects full-year net interest income (NII) to be $90 billion. That exceeded expectations of $86.2 billion, according to LSEG data. In the quarter, NII recorded a 19% increase to $24.2 billion.
Chief Executive Jamie Dimon said the U.S. economy remains resilient and the market expects a soft landing, but he expressed caution about inflation and interest rates.
“There is also a continued need for increased spending due to the green economy, the restructuring of global supply chains, increased military spending, and rising health care costs. This will make inflation more sticky and keep interest rates below market. “It may be higher than expected.” .
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. Annual revenue reached a record high of $49.6 billion.
The bank reported a 12% increase in revenue to $38.57 billion.
JPMorgan and several large banks will have to pay most of the $16 billion to replenish the Federal Deposit Insurance Corporation's Deposit Insurance Fund (DIF), which was depleted with the failures of Silicon Valley Bank and Signature Bank, and quarterly profits has been hit by. last year.
