Summary
JPMorgan Chase & Co. (JPM) reported strong financial performance for the fiscal year ended December 31, 2021, with net income of $48.3 billion, a significant increase of 66% compared to the prior year. This robust performance was largely driven by a substantial net benefit of $9.3 billion from the provision for credit losses, a stark contrast to the expense recorded in 2020, reflecting an improved macroeconomic outlook. Total net revenue saw a modest 1% increase to $121.6 billion, fueled by a 6% rise in noninterest revenue, primarily from higher Investment Banking fees and asset management fees, which helped offset a 4% decrease in net interest income. Noninterest expense increased by 7% to $71.3 billion, largely due to higher compensation and continued investments in technology and business growth. The firm maintained strong capital ratios, with CET1 capital at 13.1%, and reported significant growth in tangible book value per share. JPM's diversified business segments contributed positively, with notable performance in Consumer & Community Banking (ROE of 41%), Corporate & Investment Bank (ROE of 25%), Commercial Banking (ROE of 21%), and Asset & Wealth Management (ROE of 33%). The firm also highlighted its commitment to supporting consumers and businesses, providing $3.2 trillion in total credit and capital raised during 2021, including significant support through the Paycheck Protection Program.
Financial Highlights
35 data points| Revenue | $121.65B |
| Interest Expense | $5.55B |
| Net Income | $48.33B |
| EPS (Basic) | $15.39 |
| EPS (Diluted) | $15.36 |
| Shares Outstanding (Basic) | 3.02B |
| Shares Outstanding (Diluted) | 3.03B |
Key Highlights
- 1Net income surged by 66% to $48.3 billion, driven by a significant benefit from the provision for credit losses.
- 2Total net revenue increased by 1% to $121.6 billion, with noninterest revenue up 6% due to strong Investment Banking and Asset Management fees.
- 3All four business segments—Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management—reported positive returns on equity, demonstrating diversified strength.
- 4The firm demonstrated robust capital strength, maintaining a CET1 capital ratio of 13.1% and a Tier 1 leverage ratio of 6.5%.
- 5Total credit provided and capital raised reached $3.2 trillion, underscoring the firm's role in supporting economic activity.
- 6Shareholder returns were supported by a $3.80 per share common dividend and $18.4 billion in common stock repurchases.
- 7The firm actively managed its risk exposures, with improvements noted in credit quality metrics such as a decrease in allowance for loan losses to total retained loans ratio and a reduction in nonperforming assets.