JPMorgan Q4 2020 Results

JPMorgan Chase beat analysts’ estimates for fourth quarter profit thanks to better-than-expected trading results and an increase in the release of funds previously reserved for loan losses.

The company posted earnings of $ 3.79 per share, beating the estimate of $ 2.62 per share from analysts polled by Refinitiv. The bank would have beaten estimates even without the 72-cent EPS increase from the credit reserve releases. The company generated $ 30.16 billion in revenue, exceeding the estimate of $ 28.7 billion.

“While positive vaccine and stimulus developments contributed to these reserve releases this quarter, our credit reserves of over $ 30 billion continue to reflect significant economic uncertainty in the near term and will allow us to weather the storm. an economic environment much worse than the current baseline forecasts of most economists. CEO Jamie Dimon said in a statement.

One bright spot in 2020 for Wall Street has been trading, which is expected to be the best year since the financial crisis in terms of total income, thanks to unprecedented actions by the Federal Reserve to support markets. Investment bankers have also benefited from the wide opening of markets which has led to growing demand for IPOs and a record wave of debt issuance.

Last month, CEO Jamie Dimon said he expected fourth-quarter investment and trading banking income to be 20% higher than a year ago.

Analysts may ask Dimon about succession planning after a health crisis he suffered last year. Although it was widely reported that Dimon had heart surgery last March, he recently told the Wall Street Journal that his condition was so precarious he believed he “might not make it.”

Analysts will also be curious about the pace of share buybacks that the bank intends to make. JPMorgan announced a $ 30 billion share buyback program last month after the Federal Reserve said the industry could restart buybacks in the first quarter.

JPMorgan shares slipped 8.7% last year, compared to the 4.3% drop in the KBW Bank index.

Here are the numbers:

• Earnings: $ 3.79 per share, up from an estimated $ 2.62 per share, according to Refinitiv.

• Revenue: $ 30.16 billion, compared to $ 28.70 billion expected, according to Refinitiv.
  
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