FINANCIALS: JPM (Aa2/AA-/AA) - Q4 Results
Jan-15 13:58
JPM (Aa2/AA-/AA) - Q4 Results
A good quarter from JPM, keeping earnings stable despite lower rates and keeping a lid on expenses.
- Q4 net interest income $23,350m, flat on Q3 and only -2.9% on Q4 2023. NII in 2024 was $92.5bn expecting $94bn in 2025
- Fee Income was strong on the back of 9% growth in asset management to $4,478m and card income growing to $1,602m. Other income slightly lower on lower principal transaction gains.
- Expenses up 1% on Q3 to $22,762m and up 5% in 2024.
- CET1 climbs to 15.7%, up 0.4% vs Q3. +77bps from net income, +21bps from lower RWA, -42bps from capital distributions.
- Impaired loads up to 0.65% from 0.6% in Q3 and 0.52% in Q4 23. Loan loss rate falls to 20bps however, from 23bps in Q3.
Valuation: JPM mostly have Snr Non-Preferred in EUR and GBP. The appear to trade slightly expensive in GBP. In EUR they appear marginally cheap (c.5bps) although a little reverse Yankee premium often persists. Among the US names it trades a little inside the other curves - which should be expected given the rating - excluding GS which trades tight.
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FRANCE T-BILL AUCTION RESULTS: 8/13/28/50-week BTFs
Dec-16 13:57
| Type | 8-week BTF | 13-week BTF | 28-week BTF | 50-week BTF |
| Maturity | Feb 12, 2025 | Mar 19, 2025 | Jul 2, 2025 | Dec 3, 2025 |
| Amount | E799mln | E3.095bln | E1.485bln | E1.197bln |
| Target | E0.4-0.8bln | E2.7-3.1bln | E1.1-1.5bln | E0.8-1.2bln |
| Previous | E590mln | E398mln | E1.994bln | E1.697bln |
| Avg yield | 2.755% | 2.770% | 2.575% | 2.372% |
| Previous | 3.480% | 2.796% | 2.724% | 2.357% |
| Bid-to-cover | 2.97x | 2.53x | 2.68x | 3.73x |
| Previous | 2.25x | 2.9x | 2.82x | 3.03x |
| Previous date | Aug 19, 2024 | Dec 09, 2024 | Nov 18, 2024 | Dec 09, 2024 |
CANADA DATA: November Housing Starts +8% MOM
Dec-16 13:56
- Seasonally adjusted starts +8% In November to 262,443 units after +8% prior month.
- 6M moving average -0.3% at 243,268 units.
- According to CMHC, monthly starts in Montréal +143% and Vancouver +52% in November, both up significantly vs November 2023, actual starts in Toronto flat.
CROSS ASSET: Some Outperformance for U.S. Assets
Dec-16 13:48
U.S. assets have outperformed over the past few hours, with U.S. e-mini futures ticking higher despite weakness in global peers, Tsys bid and the BBDXY moving back towards Friday highs.
- No clear headlines to facilitate the moves, with continued focus on Trump’s America-first policies and global growth headwinds (outside of the U.S.) being pointed to as drivers here.
- The prospect of another Fed rate cut being delivered later this week is providing further tailwinds for equities and Tsys.
