JP Morgan tops analysts’ estimates for earnings and revenue in Q4

Written by: Wajeeh Khan
January 15, 2021
  • JP Morgan tops analysts’ estimates for earnings and revenue in fiscal Q4.
  • Credit-reserve releases boosted the bank's per-share earnings by 52.69 pence.
  • JP Morgan announced a share buyback program worth £21.95 billion.

JP Morgan Chase & Co. (NYSE: JPM) reported its financial results for the fiscal fourth quarter on Friday that topped analysts’ estimates for earnings and revenue. The company attributed its hawkish performance to releasing money that it had previously set aside to cover for bad loans.

JP Morgan shares, that you can learn to buy online here, were reported less than 1% down in premarket trading on Friday. Including the price action, the U.S. investment bank is now trading at £102.47 per share. In comparison, it had plummeted to as low as £57.84 per share in the last week of March 2020.

JP Morgan’s Q4 financial results versus analysts’ estimates

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According to Refinitiv, experts had forecast the company to print £21 billion of revenue in the fourth quarter. Their estimate for per-share earnings was capped at £1.92. In its report on Friday, JP Morgan blew past both estimates posting a higher £22.07 billion of revenue in Q4 and £2.77 of earnings per share.

The American multinational said that credit-reserve releases boosted its per-share earnings by 52.69 pence in the recent quarter. JP Morgan’s results come in only weeks after the bank said it will buy 3rd party loyalty program unit cxLoyalty.

CEO Jamie Dimon commented on the earnings report on Friday and said:

“While positive vaccine and stimulus developments contributed to these reserve releases this quarter, our credit reserves of over £21.95 billion continue to reflect significant near-term economic uncertainty and will allow us to withstand an economic environment far worse than the current base forecasts by most economists.”

Other prominent figures in JP Morgan’s earnings report

Other prominent figures in the investment bank’s financial report on Friday include £1.46 billion of equities trading revenue versus a lower £1.35 billion expected. Fixed-income revenue, as per JP Morgan, came in at £2.89 billion that slightly missed the analysts’ forecast of £3.02 billion.

In an announcement last month, the New York-based bank expressed plans of launching a share buyback program worth £21.95 billion. JP Morgan Chase had recorded a 4% year over year growth in its third-quarter profit, as per the report published in October.

JP Morgan Chase performed slightly downbeat in the stock market last year with an annual decline of a little under 10%. At the time of writing, the investment bank is valued at £314.91 billion and has a price to earnings ratio of 18.42.