JPMorgan Chase breaks banking records with $14bn Net Income and unprecedented growth in 2024

ByInvestment Club

Overview

JPMorgan Chase presented its 4Q24 results on January 15th, having exceeded analysts’ expectations. The bank presented a 2024 RoE of 17%, and an annual RoTCE of 22%. The increase in net income was mainly driven by Investment Banking and AWM.

Jamie Dimon, the CEO of JPMorgan Chase, commented: “Each line of business posted solid results. In the CIB, clients were active, with IB fees up 49%, and Markets revenue rose 21%. Additionally, Payments fees grew by double digits for the fourth consecutive quarter, helping drive Payments revenue to a record $18.1 billion for the year. In CCB, we continued to acquire new customers across Consumer Banking, Business Banking, Card and wealth management. For example, nearly 2 million net new checking accounts were opened during 2024. Finally, in AWM, management fees rose 21%, and revenue hit a record $5.8 billion. More impressively, client asset net inflows totaled $486 billion in 2024, bringing cumulative net inflows over the past two years to $976 billion.”

Firmwide Metrics

  • Net income of $14.0bn (up +50% YoY)
  • Net revenue of $43.7bn (up +10% YoY)
  • Credit costs of $2.6bn, of which:
    • $2.4bn of net charge-offs
    • $267m of net reserve build
  • Average loans up +2% YoY and average deposits up +2% YoY

CCB (Consumer & Community Banking)

  • Net income of $4.5bn (down -6% YoY)
  • Net revenue of $18.4bn (up +1% YoY)
  • Banking and WH revenue of $10.2bn (down -7% YoY)
  • Noninterest expense of $9.7bn (up +4%)

CIB (Corporate & Investment Banking)

  • Net income of $6.6bn (up +59% YoY)
  • Net revenue of $17.6bn (up +18% YoY), of which:
    • Banking & Payments revenue of $9.3bn (up +15% YoY) – including Investment Banking revenue of $2.6bn (up +49% YoY)
    • Markets & Securities Services of $8.3bn (up + 49% YoY)

Asset & Wealth Management (AWM)

  • Net income of $1.5bn (up +25% YoY)
  • Net revenue of $5.8bn (up +13% YoY)
  • AUM of $4tn, and Client Assets of $5.9tn (each up +18% YoY)

Author: János-Levente Bereczki

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