JPMorgan Chase (JPM, Financial) is gearing up for a spectrum of potential macroeconomic conditions, emphasizing that its credit card metrics remain strong. The bank projects that net charge-offs for its credit cards will reach approximately 3.6% by 2025 and are expected to be within a range of 3.6% to 3.9% by 2026. Furthermore, JPM foresees a reduction in its consumer banking workforce by about 10% over the next five years. The company is also making strides toward achieving a 15% share in the national retail deposits market, reflecting its long-term goals.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for JPMorgan Chase & Co (JPM, Financial) is $262.96 with a high estimate of $330.00 and a low estimate of $196.34. The average target implies an downside of 1.72% from the current price of $267.56. More detailed estimate data can be found on the JPMorgan Chase & Co (JPM) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, JPMorgan Chase & Co's (JPM, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for JPMorgan Chase & Co (JPM, Financial) in one year is $211.20, suggesting a downside of 21.06% from the current price of $267.56. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the JPMorgan Chase & Co (JPM) Summary page.
JPM Key Business Developments
Release Date: April 11, 2025
- Net Income: $14.6 billion.
- Earnings Per Share (EPS): $5.07.
- Revenue: $46 billion, up 8% year on year.
- Return on Tangible Common Equity (ROTC): 21%.
- Expenses: $23.6 billion, up 4% year on year.
- Credit Costs: $3.3 billion, with net charge-offs of $2.3 billion.
- Total Allowance for Credit Losses: $27.6 billion.
- Common Equity Tier 1 (CET1) Ratio: 15.4%.
- Capital Distributed to Shareholders: $11 billion.
- Consumer & Community Banking (CCB) Revenue: $18.3 billion, up 4% year on year.
- Commercial & Investment Bank (CIB) Revenue: $19.7 billion, up 12% year on year.
- Asset & Wealth Management (AWM) Revenue: $5.7 billion, up 12% year on year.
- Assets Under Management (AUM): $4.1 trillion, up 15% year on year.
- Client Assets: $6 trillion, up 15% year on year.
- Corporate Revenue: $2.3 billion, up $102 million year on year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- JPMorgan Chase & Co (JPM, Financial) reported a strong net income of $14.6 billion, with an EPS of $5.07, reflecting robust financial performance.
- Revenue increased by 8% year-on-year to $46 billion, driven by higher asset management fees and investment banking fees.
- The firm maintained a high CET1 ratio of 15.4%, demonstrating strong capital adequacy.
- Consumer and small business segments remain financially healthy, with spending and credit utilization in line with expectations.
- The asset and wealth management division reported a 12% increase in revenue, driven by strong net inflows and higher market levels.
Negative Points
- Net interest income excluding markets was down by $430 million or 2%, impacted by lower rates and deposit margin compression.
- Credit costs increased to $3.3 billion, with net charge-offs of $2.3 billion, indicating rising credit risk.
- Expenses rose by 4% to $23.6 billion, largely due to higher compensation and legal expenses.
- The investment banking outlook remains cautious due to elevated market uncertainty and client hesitancy.
- Home lending originations dropped 42% year-on-year, reflecting challenges in the housing market.
