JPMorgan's first quarter financial report showed strong performance, but due to the failure to raise future earnings expectations, its stock price plummeted, indicating market concerns about its continued growth.

Highlights

In the first quarter, JPMorgan Chase's earnings per share reached $4.44, higher than market expectations of $4.11. The total revenue was $42.55 billion, which also exceeded the expected $41.85 billion. This achievement is due to the integration effect and higher interest income during the acquisition of First Republic Bank last year.

Credit cost and transaction revenue

JPMorgan Chase set a credit loss reserve of $1.88 billion this quarter, far below analysts' expectations of $2.7 billion. Although trading revenue decreased by 5% compared to last year, the actual revenue from fixed income and stock trading exceeded expectations.

Outlook for 2024

JPMorgan Chase expects its net interest income to remain at $90 billion in 2024, consistent with previous forecasts, which has disappointed the market. The market originally expected the bank to increase by at least $2 billion to $3 billion. As a result, the stock price fell by more than 6%.

Market and Economic Outlook

Despite the continued stability of the US economy, JPMorgan CEO Jamie Dimon remains cautious about the future economic outlook, emphasizing that the impact of overseas conflicts and the uncertainty of inflationary pressures cannot be ignored.