JPMorgan Chase (JPM)

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How $JPM makes money
https://x.com/Mayhem4Markets/status/1812120371648139672

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not vested

JPMorgan Chase & Co – Investment banking revenue surges

Recommendation: Accumulate (Downgraded), Last done: US$210.05, TP: US$231.19

1H24 adjusted PATMI of US$26.6bn was 48% of our FY24e forecast and was slightly below our estimates.

JPM recorded higher NII, asset management, and investment banking income, which were offset by higher expenses and provisions.

DPS raised 15% YoY to US$1.15, but the dividend payout ratio dipped slightly to 19% (2Q23: 21%), with 2Q24 common stock net repurchases at US$4.9bn (2Q23: US$1.8bn).

NII rose 4% YoY from the impact of the balance sheet mix and higher rates, while loans grew 6% YoY. Principal transactions were down 1% YoY, while asset management and investment banking rose 14% and 52%, respectively.

JPM has maintained its FY24e NII guidance of US$91bn and expenses guidance of US$92bn.

Downgrade to ACCUMULATE with an unchanged target price of US$231.19 as we account for recent share price performance.

Our FY24e estimates remain unchanged.

We assume 2.07x FY24e P/BV and ROE estimate of 20.2% in our GGM valuation.

We like JPM for its ability to continue growing revenue in all their segments, particularly in the Consumer & Community Banking and Corporate & Investment Bank.

Despite headwinds to NII from deposit balances and potentially higher provisions, JPM’s strong growth in management fees and continued net inflows will support their earnings momentum.

Source: Phillips

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JPMorgan Tumbles After Bank's President Says Analysts Are "Too Optimistic"
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JPMorgan Rises After NII, Trading Revenues Jump, Offset By Profit Decline, Unexpected Spike In Credit Loss Reserve
https://www.zerohedge.com/markets/jpmor ... cted-spike

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How $JPM makes money
https://x.com/Mayhem4Markets/status/1844795346414620807

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JPMorgan Shares Jump On Stellar Q4 Earnings, Boost To 2025 NII Forecast
https://www.zerohedge.com/markets/jpmor ... e-forecast

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JPMorgan Reports Mixed Q1 Results: Record Trading Revenues As FICC Misses; Credit Reserves Soar
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