JPMorganChase (JPM) Q4 2023 earnings summary

Executive summary

• Q4 net income was $9.3B, EPS $3.04 and ROTCE 15%; excluding the $2.9B FDIC assessment and $743MM of securities losses, net income was $12.1B, EPS $3.97 and ROTCE 19%.

• FY23 managed revenue was $162.4B, net income $49.6B and diluted EPS $16.23.

• 2023 results included 2M+ net new checking accounts, 5,000+ new CB relationships and record AWM net inflows of $490B.

Financial highlights

• Q4 managed revenue was $39.9B, up 12% YoY; net interest income was $24.2B, up 19%, or up 12% excluding First Republic.

• Q4 noninterest expense was $24.5B, up 29% YoY, largely reflecting the $2.9B FDIC assessment and higher compensation; credit provision was $2.8B, including $2.2B of net charge-offs and a $598MM net reserve build.

• FY23 expense was $87.2B and credit costs were $9.3B; adjusted expense was $85.7B, excluding $1.4B of legal expense.

• Q4 average loans were $1.3T, up 17% YoY including First Republic and 4% excluding it; average deposits were $2.4T, flat YoY, or $2.3T, down 3% excluding it.

Outlook and guidance

• FY24 NII is expected at ~$90B and NII excluding Markets at ~$88B, both market-dependent; outlook assumes six rate cuts and a 4.0% federal funds target upper bound at year-end.

• FY24 adjusted expense is expected at $90B, excluding Firmwide legal expense; drivers include growth hiring, technology, marketing, market-dependent expenses, First Republic annualization and inflation.

• FY24 Card Services net charge-off rate is expected below 3.50%.

• Management expects healthy returns to continue as elevated NII and credit results normalize.