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JPMorgan Chase & Co. (JPM) will report its fourth quarter and full-year 2023 results before the market opens on Friday, kicking off earnings season for the banking sector. Analysts expect the largest U.S. bank, based on earnings, to post revenue of about $49 billion in the recently ended fiscal year.
Yahoo Finance’s David Hollerith explains the details.
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by angel smith
video transcript
Julie Hyman: Now, JPMorgan begins its earnings season on Friday. While TheStreet expects record annual profits, we’re less certain about JPMorgan’s outlook for the year ahead. Additionally, he is joined by David Hollerith from Yahoo Finance. Hi Dave. So, can JPMorgan stay in business?
David Hollerith: Well, it will be difficult to come out on top this year. Profits are expected to reach $49 billion in 2023, breaking the industry record set by JPMorgan. But this is just the latest sign that JPMorgan is the largest bank and is starting to break away from its larger peers in terms of profits. The bank is expected to earn about $20 billion more this year than second-place Bank of America, double the profits of third-place Wells Fargo and four times the profits of third-place Citi. . — or, excuse me, the No. 4 bank.
However, looking at quarterly results, it appears to be a tough quarter for relatively large banks. They’ll all pay money — at least most of them will pay a one-time fee to the FDIC. And that’s to make up for the losses that the FDIC paid in the failure, excuse me, bank failure, earlier this year.
But when it comes to next year, you know, banks are a symbol of the economy, they’re beasts of the economy, and there’s a lot of uncertainty about where interest rates are going to be cut next year, when they’re going to be cut, what economists think. is high. And that, in many ways, affects what people think will happen to banks. And obviously, if you’re the biggest bank and you’re able to increase your profits through acquisitions, which normally don’t happen in normal times, you’re going to experience the biggest and most difficult decline at the end of the year.
That’s what JPMorgan is up against. These other banks are not performing as well as well. And in some ways, analysts are starting to see them as something of a boon heading into 2024. That’s the information we got on Friday.
Josh Lipton: Major banks will release their financial results on Friday, marking the start of the earnings season. Thank you so much David. Thanks for the insight.
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