JPMorgan Sales Hit Record $38.3 Billion—Stock Soars After Earnings Shatter Expectations

Topline

JPMorgan exceeded analyst expectations in its quarterly earnings report released Friday morning, as the nation’s biggest bank revealed how it navigated the tumultuous period for the banking sector.

Key Facts

Key Background

The final three weeks of 2023’s first quarter were arguably the most eventful stretch for the banking industry since the financial crisis in the late 2000s, highlighted by the failures of American giants Silicon Valley Bank and Signature Bank and the collapse of Swiss bank Credit Suisse. In a note to shareholders last week, JPMorgan CEO Jamie Dimon said the “repercussions” of the turmoil will be felt “for years to come.” Also reporting earnings Friday are Citigroup, Wells Fargo, PNC and First Republic. JPMorgan is by far the largest U.S. bank by market capitalization and assets.

What To Watch For

The second quarter of 2023 will be the true “wild card” for banks as there’s more “meaningful” data on the effects of the banking crisis and elevated interest rates, Deutsche Bank analyst Matt O’Connor wrote in a note to clients earlier this week. O’Connor noted banks benefited from “two-plus relatively ‘normal’ months” in the most recent quarter.

Tangent

In his recent letter, Dimon shrugged off the idea of big banks cheering on the two failures and other issues at regional banks as deposits flowed in. “While it is true that this bank crisis ‘benefited’ larger banks due to the inflow of deposits they received from smaller institutions, the notion that this meltdown was good for them in any way is absurd,” Dimon wrote.

Further Reading

JPMorgan’s Dimon: Effects Of Bank Failures Will Be Felt For ‘Years To Come’ (Forbes)