Analyst Note| Eric Compton |
Wide-moat JPMorgan Chase reported solid fourth-quarter 2022 earnings per share of $3.57, beating FactSet consensus of $3.08 and our own estimate of $3.21. The main beat came from net interest income reaching $20.2 billion, roughly $1.2 billion above our own estimate. The bank’s return on tangible equity hit 20% in the quarter, and its efficiency ratio hit 53%, both excellent results. During the reporting of fourth-quarter 2022 results, the next year’s outlook is always a key data point, and here we saw no major surprises. We were expecting NII growth to slightly retreat from the fourth-quarter run rate as deposit costs catch up and market-related NII continues its decline, and the 2023 outlook of roughly $74 billion fits this narrative.