JPMorgan posts record net interest income

investmentnews.com:

JPMorgan Chase & Co. closed out the most profitable year in US banking history with its seventh consecutive quarter of record net interest income and a surprise forecast that the windfall may continue this year. 

NII — the difference between what banks earn on loans and pay out on deposits — came in at $24.2 billion in the final three months of the year, the company said in a statement Friday. The haul for all of 2024 may rise to about $90 billion, according to the bank, while analysts had been expecting a 2% drop. 

“Our record results in 2023 reflect over-earning on both NII and credit, but we remain confident in our ability to continue to deliver very healthy returns even after they normalize,” Chief Executive Jamie Dimon said in the statement.

JPMorgan and its largest peers — Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. — are all reporting results Friday, offering a look at how the US economy held up in the last three months of the year. Investors are also keen for details on what executives are expecting for the year ahead as they reckon with the Federal Reserve’s policy pivot from two years of boosting interest rates.

Shares of JPMorgan, up 22% in the past year, climbed 1.7% Friday in early New York trading. 

Results from the biggest US bank included a $2.9 billion charge tied to the failures of Silicon Valley Bank and Signature Bank. The Federal Deposit Insurance Corp. levieda special assessment to backstop uninsured depositors at those firms after they collapsed last year. JPMorgan warned that it would take the charge, which it previously estimated at around $3 billion.

The bank spent more than analysts estimated in the fourth quarter as Dimon warned that inflation could last longer than many