January 15, 2025 13:59 GMT
FINANCIALS: JPM (Aa2/AA-/AA) - Q4 Results
FINANCIALS
JPM (Aa2/AA-/AA) - Q4 Results
A good quarter from JPM, keeping earnings stable despite lower rates and keeping a lid on expenses.
- Q4 net interest income $23,350m, flat on Q3 and only -2.9% on Q4 2023. NII in 2024 was $92.5bn expecting $94bn in 2025
- Fee Income was strong on the back of 9% growth in asset management to $4,478m and card income growing to $1,602m. Other income slightly lower on lower principal transaction gains.
- Expenses up 1% on Q3 to $22,762m and up 5% in 2024.
- CET1 climbs to 15.7%, up 0.4% vs Q3. +77bps from net income, +21bps from lower RWA, -42bps from capital distributions.
- Impaired loads up to 0.65% from 0.6% in Q3 and 0.52% in Q4 23. Loan loss rate falls to 20bps however, from 23bps in Q3.
Valuation: JPM mostly have Snr Non-Preferred in EUR and GBP. The appear to trade slightly expensive in GBP. In EUR they appear marginally cheap (c.5bps) although a little reverse Yankee premium often persists. Among the US names it trades a little inside the other curves - which should be expected given the rating - excluding GS which trades tight.
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