JPMorgan Earnings: Net Interest Income Boom Continues as Management Provides Upbeat 2024 NII Outlook

Wide-moat JPMorgan reported a strong set of numbers in the fourth quarter, but profitability was adversely affected by an FDIC special assessment charge of $2.9 billion to cover uninsured deposits of certain failed banks during the banking turmoil in early 2023. Excluding this non-recurring charge, the bank reported fourth-quarter adjusted earnings per share of $3.97, higher than the $3.38 FactSet consensus estimate but lower than our own $4.18 projection for the period. While JPMorgan saw higher-than-expected net interest income, or NII, during the quarter, it was more than offset by materially lower principal transactions revenues, contributing to much of the difference from our estimate. The company's fourth-quarter results, after adjusting for the FDIC charge, resulted in a return on tangible equity of 19%.