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JPMorgan Chase (JPM +1%) attains fresh record highs today following another sizeable earnings beat in Q4 on energetic top-line growth. The prominent bank has notched double-digit earnings beats in 9 out of the past 10 quarters, underscoring impressive bottom-line consistency. Meanwhile, revs accelerated from the +6.5% yr/yr bump last quarter to return to double-digits at 10.9% to $43.31 bln, supported by a 30% surge in noninterest revenue, excluding Markets, to $13.7 bln, which helped offset a 2% dip in net interest income.

• Starting with the minor drawbacks from the quarter, JPM's Consumer & Community Banking (CCB) segment trailed in Q4, registering a meager 1% increase in net revs yr/yr to $18.36 bln. The culprit was Banking & Wealth Management, which recorded a 7% drop in sales, reflecting lower rates, deposit margin compression, and lower deposit balances as consumers continue to seek higher-yielding instruments, such as high-yield savings accounts. However, JPM noted that average deposits were flat sequentially, suggesting stabilized consumer balances.
• Furthermore, JPM's provision for credit losses was $2.6 bln, reflecting net charge-offs of $2.4 bln, a minor uptick from last quarter's $2.1 bln. The sequential jump was driven by Card Services, underpinning moderate weakness from the end consumers as they battle a dynamic economic backdrop.
• Nevertheless, on the whole, JPM delivered uplifting numbers. The other components of CCB, including Home Lending and Card Services & Auto, performed nicely, chalking up 12% and 14% revenue increases, respectively, driven by higher production revs in Home Lending and higher revolving balances and sales volume in Card & Auto.
• In Commercial & Investment Bank (CIB), net revs surged 18% yr/yr to $17.6 bln, supported by a 15% jump in Banking & Payments and 20% in Markets & Securities Services. In Banking, growth was underscored by a 49% leap in investment banking fees; JPM reiterated its confidence in its M&A pipeline. In Payments, revenue expanded by 3%, excluding the net impact of equity investments, underpinned by higher deposit balances and fee growth. Markets & Securities Services growth was assisted by robust market activity, sending fee growth higher.
• CEO Jamie Dimon, who stated today that yesterday's promotion of Jennifer Piepszak to COO does not change the succession timeline, provided color on the economy. Just last week, Mr. Dimon remarked that he was cautiously pessimistic about the U.S. economy; this measured tone continued today. The CEO stated that while the economy has been resilient, with unemployment low and consumer spending healthy, two significant risks remain. For one, inflationary conditions may persist for some time. Secondly, geopolitical tensions remain complicated.

The minor weak points in JPM's Q4 report, including sliding revenue in Banking & Wealth Management and higher net charge-offs, were more than offset by several highlights. However, today's response is more muted than last quarter as the stock trades at a relatively rich valuation, with its forward P/E multiple of 14x exceeding some of its closest peers, such as BAC at 13x, WFC at 12x, and C at 10x. Still, JPM's results set a bullish tone ahead of other bank's earnings reports in the coming days.