Recently, Wall Street promoted value stocks, and bank stocks were pushed to the forefront. J.P. Morgan Chase took the lead in releasing the latest first-quarter results. Overall, it fell short of expectations, and the trend after opening was also quite poor. From J.P. Morgan Chase's financial report, we can see some hidden concerns. The detailed analysis is as follows:
By business, J.P. Morgan Chase in the fourth quarter $JPMorgan (JPM.US)$ Consumer and community banking (CCB) net revenue was US$12.275 billion, or US$12.728 billion; corporate and investment banking (CIB) net revenue was US$11.534 billion, compared to US$11.352 billion in the same period last year; commercial banking (CB) net revenue was US$2,612 billion, compared to US$2,463 billion; and asset and wealth management (AWM) net revenue was US$4.473 billion, compared to US$3.867 billion in the same period last year.
1. Global IB fees have risen 37%, thanks to corporate and investment banking and commercial banking operations, due to unprecedented M&A activity, active acquisition financing markets, and strong IPOs. However, as we all know, last year was a huge year for US stock IPOs. A large number of technology stocks were listed at high valuations, and J.P. Morgan can be described as making a lot of money. However, against the backdrop of interest rate hikes, the recent valuation of technology stocks has been severely compressed. It is conceivable that J.P. Morgan's 2022 IPO revenue will most likely decline compared to '21. This is one of the potential concerns.
2. Market business revenue fell 11% compared to last year's record fourth quarter, but increased 7% compared to the fourth quarter of 2019, driven by strong stock performance. Asset & wealth management (Asset & Wealth Management) takes...