JP Morgan Q4 results smash earnings, miss revenue by hairline

JP Morgan Chase & Co. released its fourth-quarter earnings for FY21 on January 14, 2022 before the market opened. Here are the essential takeaways from the latest disclosure.

  • Revenue: $29.3 billion vs. $29.90 billion expected
  • EPS: $3.33 adjusted vs. $2.98 expected
  • Net Income: $10.3 billion
Financial Highlights
  • Reported revenue of $29.3 billion; managed revenue of $30.3 billion.
  • Credit costs net benefit of $1.3 billion included a $1.8 billion net reserve release and $550 million of net charge-offs.
  • Average loans up 6%; average deposits up 17%.
  • $1.7 trillion of liquidity sources, including HQLA and unencumbered marketable securities.
CEO’s Statement

“JPMorgan Chase reported solid results across our businesses benefiting from elevated capital markets activity and a pick up in lending activity as firmwide average loans were up 6%. The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks. Credit continues to be healthy with exceptionally low net charge-offs, and we remain optimistic on U.S. economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth.”

– said Jamie Dimon, Chairman and CEO of JP Morgan Chase & Co.
Analysts Estimate

The Zacks Consensus Estimate for the earnings per share (EPS) was pinned at $2.98. This indicated a substantial decline of 21.37% year-over-year. Moreover, it also suggested an increase of 19.09% than that of the last quarter.

The Earnings Expected Surprise Prediction was -0.84%, which suggested that the consensus did not expected JP Morgan Chase & Co. to meet as well as beat its estimates. The estimated revenue was pegged at $29.90 billion. This suggested a slight growth of 2.3% year-over-year.

Earnings History

The company’s third-quarter earnings for FY21 highlights include:

  • Reported revenue of $29.6 billion; managed revenue of $30.4 billion2
  • Credit costs net benefit of $1.5 billion included $2.1 billion of net reserve release and $524 million of net charge-offs.
  • Average loans up 5%; average deposits up 19%.
  • $1.6 trillion of liquidity sources, including HQLA and unencumbered marketable securities.

The company’s second-quarter earnings for FY21 highlights include:

  • Reported revenue of $30.5 billion; managed revenue of $31.4 billion
  • Credit costs net benefit of $2.3 billion included $3.0 billion of net reserve releases and $734 million of net charge-offs.
  • Average loans flat; average deposits up 23%.
  • $1.6 trillion of liquidity sources, including HQLA and unencumbered marketable securities.
Earnings forecast

Analysts Estimate earnings for the second quarter of FY22 to be $3.02 per share. This indicates a massive decline of 32.89% year-over-year. The estimated revenue for the quarter is $30.73 billion, indicating a slight decrease of 4.76% year-over-year.

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