What the company does (Business Overview) 💼
JPMorgan Chase & Co. is the largest bank in the United States and a diversified financial services firm serving consumers, businesses, institutions, and governments worldwide. In simple terms, JPMorgan makes money from two main engines:
- Net Interest Income (NII): earning more on loans and securities than it pays on deposits and borrowings.
- Noninterest Revenue: fees and markets-related income from activities like investment banking, trading, and asset & wealth management.
JPMorgan operates through four core segments: Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset & Wealth Management, which helps diversify results across different market environments.
Financial Highlights (FY2022–FY2024) 📊
- Total net revenue increased from $128,695m (FY2022) to $177,556m (FY2024).
- Net income rose from $37,676m to $58,471m.
- EPS increased from $12.1 to $19.8.
- ROE improved from 12.8% to 17.4%, and ROA from 1.0% to 1.5%.
- Total assets expanded to $4,002,814m in FY2024.
Plain English: Over these three fiscal years, JPMorgan generated more revenue and more profit, while also improving key profitability metrics that investors often watch for banks (like ROE and ROA).
Key Risks (Company- and industry-specific) ⚠️
- Credit risk: borrowers may fail to repay loans, which can increase credit losses and reduce earnings.
- Interest rate risk: changes in rates can pressure earnings by affecting NII and the value of securities portfolios.
- Liquidity and funding risk: large deposit outflows or stress in funding markets can raise costs or strain liquidity.
- Regulatory and capital risk: capital rules and stress test outcomes can influence dividends, buybacks, and balance sheet growth.
- Market and trading risk: sharp moves across rates, credit spreads, FX, equities, and commodities can create trading losses.
- Operational and technology risk: cybersecurity incidents or system failures could disrupt operations and damage trust.
- Legal and conduct risk: litigation, investigations, or compliance failures can result in fines and reputational harm.
Plain English: For banks, many major risks link directly to loan losses, interest rates, liquidity confidence, and regulation, not just “sales” like in non-financial companies.
MD&A (What management emphasized) 🧭
- Overall performance: management highlighted strong results supported by higher net interest income and diversified business lines.
- Net interest income sensitivity: NII benefited from higher rates, but management noted results remain sensitive to future rate changes.
- Noninterest revenue: fee-based lines were mixed, reflecting market conditions and client activity across businesses.
- Expenses and investment: costs increased, including spending on compensation, technology, and controls/compliance.
- Credit reserves: management discussed provisioning for credit losses and monitoring consumer credit normalization.
- Capital and liquidity: maintaining strong capital and liquidity remained central, reflecting regulatory requirements and stress testing.
Plain English: Management’s message is that JPMorgan benefited from the rate environment and its diversified model, while continuing to invest in technology and controls and staying focused on capital strength.
Takeaway ✅
Across FY2022–FY2024, JPMorgan showed rising revenue, higher earnings, and improving profitability metrics, supported by net interest income and a broad, diversified banking platform. At the same time, the company emphasized that banking performance depends heavily on interest rates, credit quality, liquidity confidence, and regulation, which is why capital and risk management remain core priorities.
📊 Income Statement
| (Unit: $m) | FY2022 | FY2023 | FY2024 |
|---|---|---|---|
| Revenue | 128,695 | 158,104 | 177,556 |
| COGS | — | — | — |
| Gross Profit | — | — | — |
| SG&A | 76,140 | 87,172 | 91,797 |
| Operating Income | 46,166 | 61,612 | 75,081 |
| Interest Income/Expense | 66,710 | 89,267 | 92,583 |
| Non-operating Income/Expense | — | — | — |
| Income Before Tax | 46,166 | 61,612 | 75,081 |
| Income Tax | 8,490 | 12,060 | 16,610 |
| Net Income | 37,676 | 49,552 | 58,471 |
| EPS | 12.1 | 16.2 | 19.8 |
Plain English: JPMorgan’s total net revenue increased steadily from $128,695m in FY2022 to $177,556m in FY2024. Net income and EPS also rose each year, meaning the bank not only generated more revenue but also translated that growth into higher profits for shareholders.
Why some lines are shown as “—”: Banks do not report COGS or Gross Profit because they do not sell physical products. Instead, bank performance is driven by net interest income and fees. Likewise, Non-operating Income/Expense is not disclosed as a single standardized line item in bank filings, so it is left blank rather than reclassifying official data.
📈 Key Ratios
Bank ratios are different: Many common ratios used for industrial firms do not apply cleanly to banks.
| FY2022 | FY2023 | FY2024 | |
|---|---|---|---|
| Profitability Ratios | |||
| ROE | 12.8% | 16.0% | 17.4% |
| ROA | 1.0% | 1.3% | 1.5% |
| ROTC | — | — | — |
| ROIC | — | — | — |
| Gross Margin | — | — | — |
| Operating Margin | 35.9% | 39.0% | 42.3% |
| Net Margin | 29.3% | 31.3% | 32.9% |
| Financial Stability Ratios | |||
| Current Ratio | — | — | — |
| Quick Ratio | — | — | — |
| Debt-to-Equity Ratio | 116.3% | 133.1% | 131.8% |
| Net Debt/EBITDA | — | — | — |
| Interest Coverage | 1.8x | 0.8x | 0.7x |
| Fixed Asset to Long-term Capital Ratio | — | — | — |
Plain English: ROE and ROA improved each year, showing that JPMorgan generated more profit from both shareholder capital and total assets. Many traditional liquidity and leverage ratios are shown as “—” because they are designed for non-financial companies and are not meaningful for banks, whose balance sheets are built around deposits and loans.
📝 Disclaimer
This article is intended for educational purposes only. It does not constitute financial, investment, or legal advice. All investment decisions involve risks, and readers should conduct their own research or consult with a licensed financial advisor.
👉 JPMorgan Chase (JPM) 2024 10-K Analysis (Filed 2025) | Explained for Beginners