JPMorgan Chase & Co. (NYSE:JPM) Q4 2023 Earnings Conference Call January 12, 2024 8:30 AM ET

Company Participants

Jamie Dimon - Chairman and CEO

Jeremy Barnum - CFO

Conference Call Participants

Matt O'Connor - Deutsche Bank

John McDonald - Autonomous Research

Jim Mitchell - Seaport Global Securities

Ebrahim Poonawala - Bank of America Merrill Lynch

Erika Najarian - UBS

Mike Mayo - Wells Fargo Securities

Gerard Cassidy - RBC Capital Markets

Manan Gosalia - Morgan Stanley

Glenn Schorr - Evercore ISI

Charles Peabody - Portales Partners

Operator

Good morning, ladies and gentlemen. Welcome to JPMorgan Chase's Fourth Quarter 2023 Earnings Call. This call is being recorded. Your line will be muted for the duration of the call. We will now go to the live presentation, please standby.

At this time, I would like to turn the call over to JPMorgan Chase's Chairman and CEO, Jamie Dimon; and Chief Financial Officer, Jeremy Barnum. Mr. Barnum, please go ahead.

Jeremy Barnum

Thank you, and good morning, everyone.

The presentation is available on our website, and please refer to the disclaimer in the back. Starting on Page 1, the firm reported net income of $9.3 billion, EPS of $3.04 on revenue of $39.9 billion, and delivered an ROTCE of 15%. These results included the $2.9 billion FDIC special assessment and $743 million of net investment securities losses in Corporate.

On Page 2, we have more on our fourth quarter results. Similar to prior quarters, we have called out the impact of First Republic, where relevant. You'll also note that we have now allocated certain deposits, which were previously in CCB to the appropriate lines of business. For the quarter, First Republic contributed $1.9 billion of revenue, $890 million of expense, and $647 million of net income.

Now, focusing on the firmwide fourth quarter results, excluding First Republic. Revenue of $38.1 billion was up $2.5 billion or 7% year-on-year. NII, ex-Markets was up $2.2 billion or 11%, predominantly driven by higher rates. NIR, ex-Markets was up $139 million or 1% and Markets revenue was up $141 million or 2%. Expenses of $23.6 billion were up $4.6 billion or 24% year-on-year, predominantly driven by the FDIC special assessment and higher compensation, including wage inflation and growth in front office and technology.

And credit costs were $2.6 billion, reflecting net charge-offs of $2.2 billion, and a net reserve build for $474 million. Net charge-offs were up $1.3 billion, predominantly driven by Card and single-name exposures in Wholesale, which were largely previously reserved. The net reserve build was primarily driven by loan growth in Card and the deterioration in the outlook related to commercial real-estate valuations in the Commercial Banking.