JPMorgan Chase posted its fourth-quarter earnings of $3.57 a share, crushing the Wall Street earnings estimates of $3.08 a share (based on FactSet data). The figure is also higher from the year-ago quarter’s level of $3.33 per share.
Net revenue increased to $35.57 billion from $30.35 billion in the year-ago quarter, and beat analysts’ expectations of $34.35 billion, (based on FactSet data).
The bank had $2.3 billion in reserves (including $1.4 billion added over the fourth quarter), exceeding analysts' prediction of a $1.8 billion for credit provisions, amidst "a modest deterioration” in the company’s macroeconomic outlook, now projecting a mild recession in the central scenario.
“The U.S. economy currently remains strong with consumers still spending excess cash and businesses healthy," said JPMorgan CEO Jamie Dimon. "However, we still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening”.
"We remain vigilant and are prepared for whatever happens, so we can serve our customers, clients and communities around the world across a broad range of economic environments," he added.