JP Morgan is America’s largest bank by assets. Last week, it dropped its results for the fourth quarter ended December 2024. 

Key numbers 

Total revenue for Q4 2024: $43.7 billion

Net income (profit after tax): $14 billion 

Earnings per share: $4.81

Proposed dividend per share $1.25 

Income split 

The 4 key revenue lines are Consumer & Community Banking, Commercial & Investment Bank, Asset & Wealth Management and Corporate banking.

CCB and CIB accounted for about 82% of total revenue earned during the quarter. They also accounted for the bulk of the profit.

CEO Jamie Dimon is also quite outspoken. So here are a few quotes from him. 

In the earnings release which was dropped alongside the results, he shared his view on the US economy and world as a whole.

“The U.S. economy has been resilient. Unemployment remains relatively low, and consumer spending stayed healthy, including during the holiday season. Businesses are more optimistic about the economy, and they are encouraged by expectations for a more progrowth agenda and improved collaboration between government and business. However, two significant risks remain. Ongoing and future spending requirements will likely be inflationary, and therefore, inflation may persist for some time. Additionally, geopolitical conditions remain the most dangerous and complicated since World War II. As always, we hope for the best but prepare the Firm for a wide range of scenarios.” 

Who takes over from Jamie as CEO?

In the earnings call, Mike Mayo an analyst asked a question on everyone’s mind. Who is his successor? Would he stay a few more years longer? 

His response

I do love what I do. And answering the second question first, look, we’re on a path. The path is not just about me.

It’s about the other senior people at the company. It’s about the board. If I’m here for several more years — and, you know, I may or may not be chairman of that, it’s going to be up to the board. Does it really fit the new CEO and stuff like that? Now, you’re talking potentially four or five years or more.

I’m 60 — I’ll be 69 in March. I think it’s the rational thing to do. I’ve had a couple of health problems you know. I just think it makes a lot of sense.

We have several exceptional people. You guys know most of them.

There may be one or two you don’t know. The board reviews and meets with them all the time. I think it’s wonderful that Jen Piepszak, who does not want to be the CEO, will be here as chief operating officer and stay after that. So, obviously, she’s willing to work with those people, which I think is great for a company, just having continuity of management and leadership.

And it’ll be one of those people. And, you know, obviously, we’re not going to tell the press, but it’s not determined yet. And, you know, of course, at the last minute, you know, a couple of years from now, people get sick, they change their mind, they have family circumstances. So, even if you thought you knew today, you couldn’t be completely sure.

 Possible growth sectors

The bank’s CFO Jeremy Barnum provided some colour on sectors it sees as growth opportunities.

The affluent section of the wealth management space. We are significantly underpenetrated relative to, you know, the number of households that we bank in the country and our capabilities and our brand and what we think we bring to the table. So, that’s why we’re pushing so hard on that front because I think we can get more share there and it completes the franchise very nicely. There are a bunch of examples elsewhere, but, you know, we talk a lot about drilling down inside the markets business, inside investment banking, and finding the places where even where at the aggregate global sector level we look great, in any given region, in any given subsector, we can do better.

Jamie on lending

The biggest driver of credit(that means lending) has been and always will be unemployment that’s both on the consumer side and it bleeds into the corporate side. It bleeds into mortgages, subprime, credit card. So, really, it’s your forecast of unemployment, you’re going to have to make your own, which will determine that over time.

For a lot of people reading this, question would be. How well is the bank doing?

Can/should one buy? 

Book value per share is $116.07

Current share price is $252.35 

The ideal book value to buy a stock is around 1 times. The stokc is trading at 2.1 times book value.

The stock is also trading at a 5 year high. Elementary TA would say wait for a pull back. 

The ultimate deciding factor would be how much of growth you expect to see in 2025. 

My entry price is extremely low. So I am sitting on the fence till Q12025 numbers are out.