Jamie Dimon rules Wall Street, basking in record-breaking profits and 2024 predictions.

Ten years after he took the job of CEO at JPMorgan Chase & Co., Jamie Dimon presides over the most profitable year in banking history. The company closed out 2023 with its seventh consecutive quarter of record net interest income (NII), and it expects the windfall to continue in 2024, with NII potentially reaching around $90 billion for the year. This forecast surprised analysts who had expected a 2% drop in NII for 2024. Dimon attributes the record results to over-earning on both NII and credit, expressing confidence in the bank’s ability to continue delivering healthy returns even after they normalize. However, JPMorgan also warned that NII figures will likely decrease throughout the year. Wells Fargo, another major US bank, announced that its 2024 NII could decline by as much as 9%.

Shares of JPMorgan rose 2.9% following the announcement. The bank reported a $2.9 billion charge tied to the failures of Silicon Valley Bank and Signature Bank, which collapsed in 2023. This charge was expected, as JPMorgan had previously estimated it to be around $3 billion. Additionally, JPMorgan’s expenses increased by 29%, reaching $24.5 billion, partly due to the FDIC special assessment and higher compensation. The bank expects adjusted expenses for 2024 to amount to approximately $90 billion.

Dimon also commented on inflation and interest rates, stating that increased government spending on the green economy, the military, and the restructuring of global supply chains may lead to stickier inflation and higher rates than expected by the markets. JPMorgan’s markets revenue exceeded expectations, with fixed-income traders’ 8% gain offsetting the 8% drop in equities. Investment-banking revenue climbed 13% but fell short of estimates due to missed figures in debt underwriting and advisory.

JPMorgan’s net charge-offs were higher than expected at $2.2 billion, driven by the company’s credit-card business and single-name exposures in wholesale, which were largely previously reserved. Additionally, the bank added $598 million to its reserves for soured loans, mostly related to cards. The results also included $743 million in net investment securities losses.