Shares of JPMorgan Chase (JPM - Free Report) closed Friday’s trading session down 6.2% after reporting fiscal 2021 fourth quarter results.
Earnings came in at $3.33 per share, marking the smallest quarterly beat in almost two years; higher-than-expected expenses resulted in a 14% decline in profit as well. Revenue of $30.35 billion rose 1% and trading revenue dropped 11% due to a slowdown in bond trading desks.
CFO Jeffrey Barnum said on the earnings call that management anticipates “headwinds” like higher expenses and moderating revenue which will cause JPMorgan’s returns to decline from past years. He also added that the bank will likely miss its own 17% return on capital target.
However, rising interest rates and loan growth will benefit JPM and other banks this year, and and net interest income is forecast to hit roughly $50 billion in 2022.
JPM is currently a #3 (Hold) on the Zacks Rank.
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Shares of JPMorgan Chase (JPM - Free Report) closed Friday’s trading session down 6.2% after reporting fiscal 2021 fourth quarter results.
Earnings came in at $3.33 per share, marking the smallest quarterly beat in almost two years; higher-than-expected expenses resulted in a 14% decline in profit as well. Revenue of $30.35 billion rose 1% and trading revenue dropped 11% due to a slowdown in bond trading desks.
CFO Jeffrey Barnum said on the earnings call that management anticipates “headwinds” like higher expenses and moderating revenue which will cause JPMorgan’s returns to decline from past years. He also added that the bank will likely miss its own 17% return on capital target.
However, rising interest rates and loan growth will benefit JPM and other banks this year, and and net interest income is forecast to hit roughly $50 billion in 2022.
JPM is currently a #3 (Hold) on the Zacks Rank.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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