JP Morgan Chase releases disappointing Q4 earnings report

JP Morgan Chase has its worst revenue results in four years.

JP Morgan Chase stock is up despite missing earning estimates. JP Morgan Chase earnings were down in its fourth-quater ( Q4) profit report.

JP Morgan Chase key figures

Earnings per share ( EPS) $1.98 a share
Revenue $26.8 billion
Net Income $7.1 billion
Profits $7.08 billion
Corporate and banking revenue $ 15.7 bilion

JP Morgan Chase earnings

JP Morgan Chase’s revenue dropped to $26.8 billion, less than the $26.9 billion financial experts predicted. The corporate and investment banking revenue has declined by 4 %. Bond trading was down 18% for the worst trading since the US market collapse of 2008. Expenses increased by about $100 billion. The only bright spot was adjusted net income, which increased JP Morgan Chase profits 67% from 2018.

JP Morgan Chase chief executive officer, (CEO), Jamie Dimon, touted the bank’s Q4 results in its earnings report.

‘Our customer-centric business model has benefited from a healthy and engaged US consumer that is spending, saving, and investing.Despite a challenging quarter, we grew markets revenue in the Investment Bank for the year with record performance in Equities and solid performance in Fixed Income. Investment Banking fees were a record for the year, driven by strength in both CIB and Commercial Banking,' said Dimon.

This continues the positive outlook Dimon had about JP Morgan Chase’s financial outlook in the summer of 2018.

‘The way I look at it, there is nothing that is a real pothole. Business sentiment is almost at the highest level it's ever been, consumer sentiment is at its highest levels, markets are wide open, housing's in short supply and my guess is mortgage credit will expand a little bit,’ said Dimon.

Dimon was also hopeful about the bank being able to make loans even if there is an economic downturn in the US.

‘We tell our management that we have no problems seeing loan books shrink.Remember, Warren Buffett used to say in the insurance business, and sometimes this is true in the loan business, [there are times] when you're better off having the salesforce go play golf than make new loans. We are not going to be stupid', said Dimon.

What does JP Morgan Chase Q4 results mean for its stock price?

JP Morgan Chase stock is up after initially falling despite the disappointing news of its revenue report. JP Morgan Chase had a lackluster revenue report, but still recorded high net income, which could possibly be boosting its shares. Investors are also still confident that the bank is still a solid buy.

JP Morgan Chase outperforms other bank stocks

Compared to other reports from banks like Citigroup, the shares are slightly higher. In comparison to Wells Fargo stock is down after releasing its revenue report. JP Morgan Chase shares are performing slightly better than the other banks that released their revenue results. Despite the downturn in JP Morgan Chase revenue, investors are still bullish on the bank’s stock.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

See an opportunity to trade?

Go long or short on more than 17,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.