- JP Morgan Chase beats analysts' estimates for profit and revenue in the fourth quarter.
- The investment bank cites a bounce-bank in its bond trading business for upbeat performance.
- JP Morgan gained around 40% in the stock market in 2019.
- The stock welcomed the new year with a record high of $141.09 on January 2nd.
The American multinational investment bank, JP Morgan Chase announced its performance results for 2019’s fourth quarter on Tuesday. Having beaten the analysts estimate for profit and revenue, the stock was seen trading higher. As per the bank, a bounce-back in its bond trading business in the last quarter contributed the most to the upbeat earnings report.
JP Morgan Recorded A 21% Growth In Profit And A 9% Growth In Revenue
Based on Refinitiv’s data, analysts had expected the investment bank to post its quarterly revenue at $27.94 billion. The earnings per share for the fourth quarter, as per the estimate, were capped at $2.35. The earnings report on Tuesday, however, beat both estimates printing a massive 21% growth in quarterly profit ($2.57 per share). On the revenue front, JP Morgan Chase recorded a 9% growth to $29.2 billion in revenue in the fourth quarter.
Chief Executive Jamie Dimon commented on the performance results and highlighted that the fourth-quarter revenue marks a record high for the investment bank that saw its stock climbing 2.1% later in the day. JP Morgan’s overall performance in 2019 remained largely upbeat. Share prices were seen trading around $140 at the end of the year that marked an around 40% growth as compared to its opening level of around $100 in January 2019. The $453.34 billion company had registered a record high of $141.09 in the stock market to welcome the new year on January 2nd.
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Other Noticeable Figures Highlighted In The Earnings Report
Other noticeable figures highlighted in the earnings report include a sharp 86% increase in bond trading revenue that was noted at $3.4 billion against a much lower analysts’ forecast of $2.61 billion. The net yield of the bank in terms of its interest-earning assets remained under pressure at 2.38%. While the figure was reported at a much higher 2.55% in the previous year, it still beat the analysts’ estimate of 2.37%. The drop in such assets was broadly associated with the lower interest rates, as per the representatives of the bank.
The quarterly performance results for the fourth quarter saw the investment bank unit posting a 48% increase in profit. The retail banking unit as well as the commercial bank segment, on the other hand, recorded a much lower gain in quarterly profit at 5% and 9% respectively.
JP Morgan is the largest bank in terms of assets in the United States. Multiple other banks including Wells Fargo and Citigroup also reported quarterly earnings later on Tuesday.