JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. released their earnings reports for the final quarter of 2022 this morning. All four major financial institutions managed to beat Wall Street’s expectations, despite a slowdown in overall deal activity such as home-mortgage loans and initial public offerings.
JPMorgan CEO Jamie Dimon said the U.S. economy “remains strong.” However, the bank said its central case for this year is a mild recession. JPMorgan said earnings for the three months ending in December were pegged at $11.1 billion, or $3.57 per share, up 7.2% from the same period last year.
Bank of America reported fourth-quarter earnings that showed the bank’s revenue benefited from higher interest rates. The institution reported revenue of $24.5 billion in the quarter, topping estimates of $24.2 billion. That was 11% higher from a year ago.
Bank of America CEO Brian Moynihan said the company faced “an increasingly slowing economic environment” but managed to end the year by growing profits from the year-ago quarter.
Citigroup reported a 6% increase in revenue to $18 billion, slightly above analyst estimates, and a 1.8% increase in stock. Though, the bank posted a lower profit. The Fourth-quarter net income fell to $2.5 billion from $3.2 billion in the year-ago quarter.
Wells Fargo also posted quarterly earnings that beat expectations, while revenue came in below the company’s forecasts. The bank reported fourth-quarter earnings of 67 cents per share on revenue of $19.7 billion, compared with year-ago earnings of $1.38 a share on revenue of $20.9 billion.
Wells Fargo projected 10% growth in 2023 net interest income, to about $49.5 billion, which is below the latest analyst estimate of $51.69 billion.
Related: Wells Fargo Agrees to Record-Breaking $3.7 Billion Settlement Over Consumer Abuses
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Episode 138 – Accounts to Consider If You Want to Save More