On Wednesday, Citi reaffirmed its Neutral stance on JPMorgan Chase & Co. (NYSE:JPM) shares, maintaining a price target of $250. The financial giant reported core pre-provision net revenue (PPNR) that surpassed consensus estimates, primarily due to stronger-than-anticipated net interest income (NII) and fixed income, currencies, and commodities (FICC) trading fees.
JPMorgan's results were buoyed by lower deposit costs, with a deposit beta of approximately 46%, and expenses that were more favorable than expected, particularly in compensation.
For the year 2025, JPMorgan has adjusted its net interest income excluding markets guidance, now expecting one rate cut and projecting an income of $90 billion, up from the previous $89 billion. This forecast aligns with, or is slightly below, market expectations.
The expense guidance for 2025 stands at around $95 billion, matching market predictions and consistent with previous management commentary. InvestingPro analysis reveals the bank trades at a P/E ratio of 13.68 and offers a steady dividend yield of 2.02%, having maintained dividend payments for 55 consecutive years.
Credit quality at JPMorgan showed improvement, as indicated by a lower allowance for credit losses. However, net charge-offs (NCOs) saw a slight quarter-over-quarter increase, led by the wholesale sector. The bank's credit card NCO guidance for 2025 remains unchanged at 3.6%. Moreover, JPMorgan's Common Equity Tier 1 (CET1) ratio experienced a significant increase of 40 basis points, reaching 15.7%. The bank reported approximately $4 billion in share buybacks.
These financial updates from JPMorgan Chase & Co. reflect the bank's performance and outlook amidst the evolving economic landscape. The maintained Neutral rating and price target by Citi suggest a watchful approach to the bank's stock as it navigates through the projected fiscal conditions for the upcoming years.
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