10-KPeriod: FY2024

JPMORGAN CHASE & CO Annual Report, Year Ended Dec 31, 2024

Filed February 14, 2025For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. (JPM) reported strong financial performance for the fiscal year ending December 31, 2024, with net income increasing by 18% to $58.5 billion and diluted EPS reaching $19.75. The company's total net revenue grew by 12% to $177.6 billion, primarily driven by a significant 23% increase in noninterest revenue, bolstered by a $7.9 billion net gain from Visa shares and higher asset management and investment banking fees. Net interest income also saw a 4% increase to $92.6 billion, supported by balance sheet actions and higher revolving balances in Card Services, though partially offset by deposit margin compression. The firm maintained a robust capital position with a CET1 capital ratio of 15.7% and a Tier 1 leverage ratio of 7.2%. The Consumer & Community Banking segment reported a 32% ROE, while Commercial & Investment Bank and Asset & Wealth Management also demonstrated strong profitability with ROEs of 18% and 34%, respectively. The company also authorized a new $30 billion common share repurchase program. Despite the positive financial results, the Firm faces a complex operating environment characterized by extensive regulation. Significant risk factors include regulatory risks, market risks, and operational risks, including cybersecurity. The company is subject to ongoing regulatory scrutiny and is navigating proposed changes to U.S. risk-based capital frameworks. Furthermore, several recent CFPB rules related to late payment fees, data sharing, and overdraft fees are under legal challenge, which could impact future operations if enacted. The company also highlighted its commitment to human capital, reporting a global workforce of 317,233 employees, with efforts focused on talent attraction, development, and retention.

Financial Highlights

34 data points
Beta

Revenue

$177.56B

Net Income

$58.50B

32.9% Net Margin

EPS (Diluted)

$19.75

Total Assets

$4.00T

Cash & Equivalents

$469.32B

Free Cash Flow

-$42.01B

Financial Statements
Beta
Revenue$177.56B
Net Income$58.50B
EPS (Basic)$19.79
EPS (Diluted)$19.75
Shares Outstanding (Basic)2.87B
Shares Outstanding (Diluted)2.88B

Key Highlights

  • 1Net income surged 18% to $58.5 billion, with diluted EPS at $19.75.
  • 2Total net revenue increased 12% to $177.6 billion, driven by a 23% rise in noninterest revenue, including a $7.9 billion gain from Visa shares.
  • 3Net interest income grew 4% to $92.6 billion, benefiting from balance sheet actions and higher Card Services revolving balances.
  • 4The Common Equity Tier 1 (CET1) capital ratio remained strong at 15.7%, and the Tier 1 leverage ratio was 7.2%.
  • 5The firm announced a new $30 billion common share repurchase program.
  • 6Key business segments showed strong performance: CCB (32% ROE), CIB (18% ROE), and AWM (34% ROE).
  • 7Total employees grew to 317,233 globally, reflecting increased hiring in front office and technology roles.

Frequently Asked Questions

JPMorgan Chase's total net revenue increased by 12% to $177.6 billion. This growth was primarily driven by a substantial 23% increase in noninterest revenue, which benefited from a significant $7.9 billion net gain related to Visa shares, coupled with higher asset management fees in Asset & Wealth Management and increased investment banking fees in the Commercial & Investment Bank segment. Net interest income also contributed positively, rising 4% to $92.6 billion, supported by balance sheet management, higher revolving balances in Card Services, and the timing impact of the First Republic acquisition.

JPMorgan Chase operates in a highly regulated environment, and the company's financial performance and operations are significantly influenced by applicable laws, rules, and regulations. While the report doesn't detail specific impacts on 2024 performance, it highlights ongoing regulatory scrutiny and potential future impacts from proposed changes to U.S. risk-based capital frameworks and various CFPB rules under legal challenge. The firm's robust capital ratios and risk management framework are designed to navigate these regulatory complexities.

For the full year 2025, JPMorgan Chase's management expects net interest income to be approximately $94.0 billion (market dependent), with net interest income excluding Markets projected at around $90.0 billion. Adjusted expenses are expected to be approximately $95.0 billion (market dependent).

JPMorgan Chase maintained a strong capital position throughout 2024. The CET1 capital ratio stood at 15.7%, and the Tier 1 leverage ratio was 7.2%. The company's Tangible Book Value Per Share (TBVPS) grew by 13.0% to $97.30. In terms of capital actions, the firm's Board of Directors declared a quarterly common stock dividend of $1.25 per share, payable on January 31, 2025. Additionally, a new $30 billion common share repurchase program was authorized, effective July 1, 2024, under which $18.8 billion of shares were repurchased in 2024.