01—Abstract
Summary
Summary of the 8-K filed January 15, 2025. Cited figures are marked; the original filing is the authoritative source.
JPMorgan Chase reported 4Q24 net income of $14.0Ba and diluted EPS of $4.81, with managed revenue of $43.7B, expense of $22.8B, and a managed overhead ratio of 52%.
Return on tangible common equity (ROTCE) was 21%, and the firm ended the quarter with a Standardized CET1 ratio of 15.7%, up from 15.3% in 3Q24. Full-year 2024 net income was $58.5Bb (EPS $19.75), but this included roughly $7.3B of pre-tax significant items, mainly a $7.9B Visa share gain partly offset by a $1.0B Foundation donation, $546mm of investment securities losses, and a $725mm FDIC special assessment increase. Excluding these items, FY24 net income was $54.0B and EPS was $18.22.
Capital and distributions remained strong: the firm paid a $1.25c per share common dividend ($3.5B) and made $4.0B of net share repurchases in the quarter, with a last-twelve-month net payout of 54%. Credit costs rose to $2.6B in 4Q24 from $2.1B in net charge-offs trends, with Card Services net charge-off rate at 3.30%, and the firm built a net reserve of $0.3B. Management guided to 2025 net interest income of about $94B (about $90B excluding Markets) on one assumed Fed rate cut, adjusted expense of about $95B, and a Card Services net charge-off rate of about 3.6%, all subject to market conditions.
For investors, the quarter reflects solid profitability and capital strength, with the key watch items being net interest income pressure from lower rates, rising card credit costs, and the step-up in 2025 expense. The earnings presentation is furnished under Item 7.01 and is not deemed filed for Section 18 purposes.
02—Key points
Key Highlights
- 4Q24 net income of $14.0B and diluted EPS of $4.81, up from $13.0B-equivalent in 3Q24 by $1.1B and up $4.7B year over year
- Managed revenue of $43.7B, up $3.8B YoY, driven by Markets revenue of $7.0B and net interest income of $23.5B
- Standardized CET1 ratio of 15.7% (Advanced 15.8%) and CET1 capital of $276B, both up from 3Q24, with total loss-absorbing capacity of $547B
- ROTCE of 21% in 4Q24 and 22% for FY24 (20% excluding significant items), with a managed overhead ratio of 52%
- Capital return of $3.5B in common dividends ($1.25 per share) and $4.0B in net share repurchases during the quarter
- FY24 results included about $7.3B of pre-tax significant items; excluding them, net income was $54.0B and EPS $18.22
- 2025 outlook: NII of about $94B (about $90B ex-Markets), adjusted expense of about $95B, and Card Services NCO rate of about 3.6%, all market dependent
03—Questions
Frequently Asked Questions
How did JPMorgan perform in the fourth quarter of 2024?
The firm earned $14.0B in net income and $4.81 per diluted share in 4Q24, with managed revenue of $43.7B, expense of $22.8B, and a 52% managed overhead ratio. ROTCE was 21%, and results were up year over year from $9.3B-level net income in 4Q23 (net income rose $4.7B YoY).
Why is full-year 2024 EPS reported at $19.75 but the company also cites $18.22?
The $19.75 figure is reported EPS, which includes significant items: a $7.9B net gain on Visa shares, offset by a $1.0B Visa share donation to the Foundation, $546mm of investment securities losses, and a $725mm FDIC special assessment increase. Excluding these items, EPS was $18.22, which is a non-GAAP measure management uses to show underlying performance.
How is capital positioned after the quarter?
The Standardized CET1 ratio rose to 15.7% from 15.3% in 3Q24, and the Firm SLR was 6.1%. Total CET1 capital was $276B, and the Firm continued returning capital through dividends and buybacks while still growing CET1 ratio, though the presentation notes a remaining $720mm CECL capital transition benefit.
What are the main risks and headwinds for 2025?
Net interest income ex-Markets is expected to fall from $92B in 2024 to about $90B in 2025 due to lower rates and deposit margin compression, partly offset by balance sheet growth. Expenses are guided to about $95B, up from $91.1B adjusted, driven by technology, marketing, and volume-related costs. Card credit costs are expected to remain elevated, with a Card Services NCO rate around 3.6%.
Which business segments drove results?
The Commercial & Investment Bank earned $6.6B in net income, up 59% YoY, on Markets revenue of $7.0B and IB fees of $2.5B. Asset & Wealth Management earned $1.5B, up 25% YoY, with AUM of $4.0T. Consumer & Community Banking earned $4.5B, down 6% YoY, as higher Card Services costs and credit provisions weighed on results.
04—Continue