Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, January 19, 2024

Article Excerpt

J.P. MORGAN CHASE & CO., $170.31, New York symbol JPM, is a buy. Morgan is the largest banking firm in the U.S., with total assets of $3.89 trillion as of December 31, 2023. In May 2023, the bank acquired most of the assets and deposits of failed California-based First Republic Bank for $10.6 billion. The deal generated a one-time gain of $2.7 billion and contributed $647 million to Morgan’s earnings in the fourth quarter of 2023. The banking giant also set aside $2.76 billion to cover potential loan losses in the latest quarter; the provisions are up 20.7% from $2.29 billion a year earlier. That’s mainly due to concerns over the impact of rising interest rates on repayments of credit card and commercial real estate loans. As a result, Morgan’s earnings fell 16.3%, to $8.87 billion from $10.60 billion a year earlier. Due to fewer shares outstanding, per-share earnings declined at a slower rate of 14.8%, to $3.04 from $3.57. Investors should note that Morgan paid…