JPMorgan Chase & Co. recorded an annual profit, which turned out to be the largest among all similar indicators of other lenders in the history of US banking.
The mentioned financial institution, which is the biggest in the banking sector of the United States, on Wednesday, January 15, announced that its net income for 2024 was fixed at the $58.5 billion mark. This indicator showed an increase of 18% year-on-year. In 2023, the net income of the largest financial institution in the United States was fixed at the $49.6 billion mark. It is worth noting that this indicator has been breaking records for JPMorgan Chase for the second year in a row.
The competitors of the financial institution in the United States have not even come close to the mentioned reading yet. Among them, Bank of America Corp. holds the record profit, which was fixed in 2021. This figure was recorded at the $32 billion mark.
For the first time in 10 years, the six largest banks in the United States generated $1 trillion in profits. At the same time, in this case, the main contribution was made by JPMorgan Chase. The mentioned financial institution’s 2024 haul means that its profit has doubled since 2020, when the bank made $29.1 billion.
JPMorgan Chase chief executive officer Jamie Dimon stated that the fourth quarter of 2024 was strong and noted that lines of lender’s businesses showed solid results.
The figures released on Wednesday reinforce the mentioned financial institution’s status as the largest and most profitable in the United States. During the trading, the value of the bank’s shares increased by 1.1%.
The profit of the largest financial institution in the United States for the fourth quarter of 2024 was fixed at the $14 billion mark. This indicator showed an increase of 50% year-on-year. Also, in the relevant context, it is worth noting separately that noninterest expenses fell by 7% from a year earlier when the financial institution had a $2.9 billion FDIC assessment tied to regional bank failures.
The bank’s revenue for the fourth quarter of 2024 amounted to $43.74 billion. This indicator increased by 10% year-on-year. It is worth noting that the corresponding result was driven by the bank’s operations on Wall Street and net interest income, amounting to $23.47 billion, which is almost $400 million higher than the StreetAccount estimate.
JPMorgan Chase has recently consolidated its status as the largest financial institution in the United States. In the relevant context, in addition to revenue growth and profit rising, it is worth mentioning that the lender won an auction to take over First Republic out of Federal Deposit Insurance Corp. receivership in 2023. The bank paid the largest FDIC assessment among its peers a year ago to shore up the deposit insurance fund. At the same time, the financial institution has become a kind of beneficiary of the regional banking crisis. Against the background of the mentioned situation, the lender gained even more deposits and assets.
The financial institution’s revenue from fixed-income trading in the fourth quarter of 2024 amounted to $5 billion. This indicator increased by 22% year-on-year. StreetAccount estimate provided that the mentioned figure would be fixed at the $4.42 billion mark on rising credit and currency results.
The bank’s operations related to equities generated revenue of $2 billion in the fourth quarter of 2024. This indicator increased by 22% year-on-year. At the same time, the StreetAccount estimate provided that the bank’s revenue from the mentioned activities would be fixed at the $2.37 billion mark.
Investment banking fees increased 49% year-on-year to $2.48 billion in the fourth quarter of 2024. The StreetAccount estimate stipulated that the corresponding figure would be fixed at the $2.39 billion mark.
Jamie Dimon stated that the current condition of the United States economic system is characterized by resilience. According to him, factors such as low unemployment and healthy consumer spending contribute to the corresponding situation. Also, in the relevant context, he separately mentioned optimism about the US President-elect Donald Trump’s incoming administration’s pro-growth agenda.
At the same time, Jamie Dimon underlined that two significant risk factors remain in force. According to him, ongoing and future spending requirements are likely to be inflationary. This means that inflation may persist for some time. Also, in the context of risks, Jamie Dimon mentioned the current state of affairs in the space of geopolitical relations. According to him, the geopolitical conditions remain the most dangerous and complicated since World War II. It should be noted separately that the relevant situation is on a trajectory of consistent escalation and does not show signs or even indirect hints of an early improvement in the order of things. Donald Trump’s intention to raise tariffs on imported goods is highly likely to provoke an increase in global trade tensions, which will complicate the geopolitical state of affairs.
JPMorgan Chase chief financial officer Jeremy Barnum, during a conversation with media representatives, said that the bank’s net interest income for 2025 would amount to about $94 billion.
The end of 2024 has become a kind of chronological space containing reasons for optimism for the largest financial institution in the United States. In the relevant context, it is worth mentioning the increased activity on Wall Street. At the same time, Main Street consumers are demonstrating resilience, which is also a positive factor.
The victory of Donald Trump in the November US presidential election is a reason for hopes for regulatory relief. Jamie Dimon stated that regulation should be designed in such a way as to ensure an effective balance between promoting economic growth and maintaining a safe and sound banking system. It will be known very soon whether this concept will become a reality.
It’s worth mentioning that in 2024, Jamie Dimon signaled that he would likely step down as JPMorgan Chase’s chief executive officer within five years. The contenders to succeed him include Marianne Lake, Troy Rohrbaugh, and Mary Erdoes.
So far, there is no answer to the question of what impact the changing outlook for the Federal Reserve’s interest rates cuts will have on the activities of the largest financial institution in the United States across its sweeping operations. Currently, the US financial regulator expects two lowering of borrowing costs. At the same time, certain changes in the situation in the United States economic system may force the Fed to act otherwise, including suspending the process of easing monetary policy.
It is also not yet known what JPMorgan Chase will do with a possible windfall of capital if Donald Trump regulators present a gentler version of the Basel 3 Endgame, as potential nominees have supported. Last year, Jamie Dimon said that share buybacks would be muted because the stock was expensive. Since then, the corresponding indicator has grown.
As of December 31, 2024, JPMorgan Chase had assets worth $4 trillion and $345 billion in shareholders’ equity.
As we have reported earlier, JPMorgan Chase Eyes Commercial Banking Expansion in Germany.
