Well folks, JPMorgan Chase & Co. just had a quarter revenue on a Friday that had analysts jumping for joy! Apparently, their net interest income surged almost 50% from a year ago thanks to those high rates. Cha-ching!
Here’s the rundown: Adjusted earnings were $4.32 per share, beating the Refinitiv estimate of $3.41 per share. And, hold onto your seats, revenue clocked in at $39.34 billion. That’s right, $39.34 billion! Analysts were only estimating $36.19 billion. Looks like our friends over at JPMorgan are rolling in the dough!
The bank’s profits also skyrocketed 52% to $12.62 billion or $4.10 per share for the first three months of the year. Whoa, did anyone else just feel that ground shake with all those zeros? Now, the figure may include $868 million in losses on securities, but let’s be real, we can’t even wrap our heads around a number that big. Without those losses, the company’s earnings would still have been a cool $4.32 per share. Not too shabby, am I right?
Companywide, revenue went up 25% to $39.34 billion. Can we say “wow” again? That’s just bananas! We have to give the Federal Reserve a round of applause for their most aggressive rate-hiking campaign in decades that led to a 49% rise in net interest income to $20.8 billion. Analysts didn’t see that one coming!
But wait, there’s more! JPMorgan also raised one of its key pieces of guidance that looks very promising for the near future. Net interest income is set to hit about $81 billion this year, $7 billion more than previously forecasted. How did they manage that? Well, CFO Jeremy Barnum said it’s mostly thanks to lower deposits rates later in the year if the Fed decides to cut rates. Clever!
Shares of JPMorgan rose 7% in midday trading. Yowzers! That’s the highest upside move on an earnings report the bank has seen in over 20 years (according to Bespoke Investment Group). Can anyone say, cha-ching again?!
The CEO of JPMorgan, Jamie Dimon, said in a statement, “The U.S. economy continues to be on generally healthy footings — consumers are still spending and have strong balance sheets, and businesses are in good shape.” Sounds like a lot of healthy feet out there! However, he did mention the “storm clouds” they’ve been watching “on the horizon.” So, the banking industry could pull back on lending as banks become more conservative ahead of a possible downturn. That’s a bit gloomy, but we’re too busy counting all those billions to worry about it for now.
Serious News: cnbc
