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JP Morgan Q1 Earnings Call Overview

JPMorgan Chase & Co reported its best quarterly results by earning a $12.1 billion net income (i.e.,$3.79 EPS) in Q4 2020. 

The US-based global investment bank has surpassed its agreement by $1.9 billion, including credit reserves of $2.9 billion and $1.1 billion of net charges. Furthermore, there is an increase of $0.72 in earnings per share.

The firm has recorded $30.16 billion in the consolidated net income on the Power Play, exceeding the analysts' estimates of $28.74 billion. The gain is 3.4% up from last year and overshadowed the forecast by 500 basis points as developments continue to be shown by both customers and investment banking.

Headquartered in New York City, JPMorgan is a financial service holding corporation that serves individuals and corporations in over 100 countries. It is ranked as the largest bank in America and the seventh-largest bank in the world by total assets, by S&P Global Inc, a US publicly traded organization.

JP Morgan was founded in 2000 by Aaron Burr, John Pierpont Morgan, Balthazar P. Melick, and John Thompson. It is listed on the New York Stock Exchange and has become the most costly bank with a market capitalization worth $392 billion.

The JP Morgan brand has been divided into segments, such as asset management, investment banking, private banking, private wealth management, and treasury services. JP Morgan's top rivals are Morgan Stanley, Goldman Sachs, HSBC, Citi Group, Wells Fargo and Bank of America. With US$45.0 billion in assets under management, the JPMorgan Chase hedge fund division is the world's third-largest.

According to the Chairman and CEO of JP, Jamie Dimon, the business could achieve a record profit irrespective of this challenging year because of the diversified business model and dedicated team. He also disclosed that, this year, JPMorgan's expenses would increase substantially. Furthermore, he predicts that in 2021, the expenditure would grow to over $68 billion,i.e., 4.4 percent higher than in 2019.

In Q4 2020, JP's Global investment banking was 34% up, adding to an increase in market revenue by 20%. The stock market rose by 32%, with Asset Management and Commercial Banking up 9 and 8 percent, respectively. For Capital Distribution, the Common dividend was $2.8 billion, or $0.90 per share. The “no purchases” in the fourth quarter of 2020 will begin repurchases in Q1, 2021.

Dimon mentioned that during Q1, JPMorgan had authorization from the Fed to buy back $4.5 billion in shares. The JP Morgan group plans to spend on takeovers and internal investments this year. Currently, JP Morgan is working to achieve carbon neutrality by 2050.