JPM: JPMorgan Stock Plunges 6.5% on Weak 2024 Guidance Despite $13.4B in Profits

Investors shrugged off a 6% rise in first-quarter earnings and solid revenue and reacted to the bank’s flat growth projections for the year.

Key Points:

• JPMorgan shares nosedive 6.5%.
• Bank earned a hefty $13.4 billion.
• Jamie Dimon strikes cautious tone.
• JPMorgan stock JPM fell 6.5% Friday after the banking giant reported earnings figures which topped estimates. Its guidance, however, lacked the juice needed to drive investors into a higher gear. Despite the drop — the steepest one-day plunge since 2020 — JPMorgan shares are up 6.2% on the year, outperforming other large players from the big bank space.
• JPMorgan picked up $42.5 billion in revenue for the first quarter, up 8% from the year-ago quarter. Profits exceeded expectations, coming in at a 6% increase to $13.4 billion, or $4.44 a share. All eyes were on the net interest income, or NII, which helped the firm rake in record profits last year. And this is what spoiled the mood and led to the share selloff.
• Net interest income — the difference between deposit costs and loan gains — for the full 2024 is projected to stay fairly unchanged at $89 billion, or $1 billion more than prior estimates.. Investors had expected a bump of $2 billion or $3 billion. Long-reigning chief executive Jamie Dimon, a beloved Wall Street boss, cited “terrible” ongoing wars weighing on the global economy and cautioned that the bank must be prepared for “a wide range of environments.”