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JPMorgan Chase Falls on Its Q4 2018 Earnings Miss


Jan. 15 2019, Updated 11:09 a.m. ET

JPMorgan Chase in the fourth quarter

Today, JPMorgan Chase (JPM), America’s largest bank, reported its earnings results for the fourth quarter of 2018. In the quarter, JPM missed analysts’ earnings estimates (compiled by Reuters) for the second time in 2018.

In the quarter, JPM’s adjusted EPS stood at $1.98 compared to analysts’ consensus estimate of $2.20. Now, let’s take a look at some other key highlights of the company’s fourth-quarter earnings results.

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Key highlights

On a positive note, JPMorgan’s fourth-quarter adjusted earnings rose 12.5% YoY (year-over-year). Its adjusted revenue for the quarter was $26.80 billion, up ~5.3% YoY. However, its revenue also missed analysts’ consensus estimate of $26.83 billion. As expected, high interest rates and positive loan growth boosted the largest US bank’s fourth-quarter earnings in 2018. In contrast, a fall in bond trading negatively affected its results.

While JPMorgan Chase’s earnings miss drove pessimism, its consistent improvement in revenues and profit margins could help it regain investors’ confidence going forward.

Nonetheless, JPMorgan Chase’s adjusted net profit margin in the fourth quarter of 2018 expanded to 26.4% from 24.3% in the fourth quarter of 2017.

At 9:46 AM EST, JPM was trading at a fall of 1.5% compared to the 0.6% rise in the S&P 500 Index (SPY). At the same time, its peers (VFH) (KBE) Bank of America (BAC), Morgan Stanley (MS), Wells Fargo & Company (WFC), and Citigroup (C) were down 0.5%, down 0.6%, down 1.4%, and up 2.2%, respectively.

Earlier this morning, Wells Fargo also released its fourth-quarter earnings results. Stay tuned to learn more.


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