JPM Reports Huge Trading Miss As FICC Revenue Plunges To Lowest Since Financial Crisis

Tuesday, January 15, 2019
By Paul Martin

by Tyler Durden
Tue, 01/15/2019

To anyone who carefully read yesterday’s dismal Citi earnings report, which was a major disappointment in virtually every way and especially in the bank’s FICC group, with the exception of Citi’s core lending business which traders decided to focus on and push Citi’s stock price 4% higher, today’s disappointing JPMorgan results should not come as a surprise.

Actually, JPMorgan Q4 results were even worse than Citi’s as they were a disappointment across the board, with both reported revenue of $26.1BN and “managed” revenue of $26.8BN missing consensus expectations of $26.9BN, while EPS of $1.98 was not only well below the $2.20 consensus, but was also the first JPM earnings miss in 15 quarters.

Commenting on the surprising miss, Wolfe Research’s Steven Chubak wrote that the results were “very un-JPMorgan-like” and flagged the broad-based core miss, noting that JPMorgan “has a strong track record of delivering strong revenue/earnings beats and these results appear rather unremarkable. The lone bright spot was strong NII/core loan growth, but optimism here will likely be tempered by muted NII guidance” for the first quarter, of “flat” versus the prior quarter. “We expect shares to underperform, with the rest of the group likely to trade in sympathy.”

The Rest…HERE

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