JPMorgan shares fall 5% after CFO lowers guidance on ‘headwinds’ including wage inflation

Investing News

In this article

JP Morgan CEO Jamie Dimon listens as he is introduced at the Boston College Chief Executives Club luncheon in Boston, Massachusetts, U.S., November 23, 2021.
Brian Snyder | Reuters

JPMorgan Chase reported fourth-quarter earnings before the opening bell Friday.

Here are the numbers:

  • Earnings: $3.33 a share, vs. estimate $3.01, according to Refinitiv.
  • Revenue: $30.35 billion, vs. estimate $29.9 billion.

JPMorgan Chase, the first major bank to report fourth-quarter earnings, will be closely watched for signs of an expected rebound in lending.

Government stimulus programs during the pandemic left consumers and businesses flush, resulting in stagnant loan growth and prompting CEO Jamie Dimon to say last year that loan growth was “challenged.”

But analysts have pointed to a rebound in the fourth quarter, driven by demand from corporations and credit card borrowers. They’ll want to see that show up in JPMorgan’s results, as that, along with the Federal Reserve’s expected rate hikes, are two primary drivers of the industry’s profitability.

Analysts may also ask the bank about the impact of its recent decision to rein in overdraft fees. JPMorgan said last month that it would give customers a grace period to avoid the punitive fees, a move that along with other changes will have a “not insignificant” hit to revenue.

JPMorgan chief operating officer Daniel Pinto said last month during a conference that fourth-quarter trading revenue was headed for a 10% drop, driven by a decline in fixed income activity from record levels. Offsetting that is an expected 35% jump in investment banking fees, he said.

The bank was forced to pay $200 million in fines last month to settle charges that its Wall Street division allowed workers to use messaging apps to circumvent record keeping laws.  

Shares of JPMorgan have climbed 6.2% this year, lagging the 11.6% rise of the KBW Bank Index.  

This story is developing. Please check back for updates.

Products You May Like

Articles You May Like

Investment in space companies hit record $14.5 billion in 2021, report says
Stocks making the biggest moves premarket: Bank of America, UnitedHealth, P&G and more
3 Energy Stocks to Avoid in 2022
Stocks making the biggest moves after hours: Netflix, CSX & more
Stocks making the biggest moves midday: SoFi, Procter & Gamble, U.S. Bancorp and more

Leave a Reply

Your email address will not be published. Required fields are marked *