Jamie Dimon keeps winning. JPMorgan just booked a bigger annual profit than any US bank in history.
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- JPMorgan reported $49.6 billion of net income last year, beating its own record set in 2021.
- That marks a higher annual profit than any other firm in US banking history, per Bloomberg.
- The bank attributed the record results to a surge in interest income as rates rose through 2023.
JPMorgan had a monster year in 2023.
Even as it reported a decline in fourth quarter profit, the bank led by Jamie Dimon notched a bigger annual profit than any other firm in US banking history, per Bloomberg, with net income hitting $49.6 billion — a 32% jump from the year prior, and besting its own record from 2021, according to its earnings report released Friday.
A driving force for the record year was net interest income, or the ratio of what banks earn on loans and pay back on deposits. The bank attributed the surge to higher rates and higher revolving credit card balances. Its takeover of First Republic Bank earlier in 2023 also bolstered interest income booked throughout the year.
In the fourth quarter of 2023, JPMorgan saw $24.2 billion in net interest income, the company said in its earnings statement. It marked the company's seventh consecutive quarter of record net interest income.
"Our record results in 2023 reflect over-earning on both NII and credit, but we remain confident in our ability to continue to deliver very healthy returns even after they normalize," Dimon said in a statement. "Our balance sheet remained extremely strong, with a CET1 ratio of 15.0%, a staggering $514 billion of total loss-absorbing capacity and $1.4 trillion in cash and marketable securities."
The bank also saw expenses jump 29% in the fourth quarter to $24.5 billion, which included a $2.9 billion FDIC special assessment fee to replenish the regulator's losses after it backstopped customer deposits during the flurry of bank failures earlier in the year.
"Net income was $9.3 billion, down 15%, or down 21% excluding First Republic, predominantly driven by the FDIC special assessment," the bank said, adding that net revenue was $39.9 billion, up 12%, or up 7% excluding First Republic.
FactSet estimates were for earnings per share of $3.35. The bank reported EPS of $3.04.
Shares of JPMorgan surged 26% in the last year. The stock was trading around $170 a share on Friday.