Big bank earnings season continued Tuesday with JPMorgan Chase &
Co. (NYSE: JPM) catching the Street off guard with a
notable earnings miss in its fourth-quarter
results.
What Happened
JPMorgan said it earned $1.98 per share in the fourth quarter on revenue of $26.1 billion, which may not compare to Wall
Street's estimates of $2.25 per share and $27.28 billion. Tuesday's earnings report marks the bank's first profit miss in 15
quarters, CNBC
reported.
The earnings miss is mostly due to the fixed income business unit, which generated revenue of $1.86 billion versus expectations
of $2.2 billion.
Net income during the fourth quarter improved from a loss of $1.314 billion a year ago to $7.066 billion, although last year's
results includes a $2.4 billion reduction due to tax reforms. Net interest in the quarter rose 9 percent from last year to $14.5
billion while noninterest revenue was down 1 percent to $12.3 billion with "no notable drivers" present.
Why It's Important
JPMorgan CEO Jamie Dimon said in the press release 2018 was "another strong year" for the company as it generated record revenue
and net income. In addition, each business unit improved revenue and net income for the year while simultaneously making
investments in its business.
What's Next
Looking forward to 2019, Dimon called on U.S. politicians to "strike a collaborative, constructive tone, which would reinforce
already-strong consumer and business sentiment." The CEO added the business community and government need to collaborate to "solve
problems and help strengthen the economy for the benefit of everyone."
Shares traded around $98.20 at time of publication, down 2.7 percent.
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Photo credit: Steve Jurvetson: Jamie Dimon, via Wikimedia
Commons
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