Finance News

JPMorgan beats earnings estimates on better-than-expected mortgage and buying and selling quantity

Jamie Dimon, CEO of JP Morgan Chase, will appear in CNBC's Squawk Box at the 2020 World Economic Forum in Davos, Switzerland on January 22nd, 2020.

Adam Galica | CNBC

JPMorgan Chase beat analysts' estimates for earnings and sales due to better-than-expected trading results and a boost from the release of funds previously earmarked for credit losses.

Here are the numbers:

Earnings: $ 3.79 per share versus $ 2.62 per share after refinitive. Revenue: $ 30.16 billion versus $ 28.70 billion after refinitive.

JPMorgan Chase, the first major lender to report fourth quarter earnings, is being watched closely for clues as to how the industry is weathering the coronavirus pandemic.

An important question is whether banks, which allocated tens of billions to cover loan losses over the past year, have largely finished preparing for defaulted loans, and may even start releasing reserves.

A bright spot for Wall Street in 2020 was trading, which is expected to be the best year in terms of total revenue since the financial crisis thanks to unprecedented moves by the Federal Reserve to support markets. Investment bankers also benefited from the fact that wide open markets brought with them increased demand for IPOs and a record rate of debt issuance.

Last month, CEO Jamie Dimon said he expected commercial and investment banking revenues to grow 20% year over year in the fourth quarter.

Analysts might ask Dimon about succession planning after a health crisis he had last year. Although it was widely reported that Dimon had heart surgery in March last year, he recently told the Wall Street Journal that his condition was so precarious that he thought he "couldn't make it".

Analysts will also be excited to see how quickly the bank expects share buybacks. JPMorgan announced a $ 30 billion share buyback program last month after the Federal Reserve announced that the industry could resume buybacks in the first quarter.

JPMorgan stocks were down 8.7% over the past year, compared with the KBW Bank Index's 4.3% decline.

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