The largest bank in the US is JP Morgan Chase. It is also the 5th largest in the world by total assets. JP Morgan has over 3 trillion in assets under its management. JP Morgan is part of the famous Big Four grouping of banks in the US and is one of the most well-known bulge bracket firms. The interest rate cycle has seen historic lows in recent times. However, the rates are starting to trend up and some investors may be looking for bank stocks to invest in now. For such investors, JP Morgan, Bank of America, and Citigroup may be potential candidates for a long position.
JP Morgan Reported Positive Q42020 Earnings
On 15th January 2021, JP Morgan reported its fourth-quarter 2020 earnings. Revenues were up 3% year-on-year from $29.2 billion to $30.2 billion. Net income grew a significant 42% year-on-year from $8.5 billion to $12.1 billion. It makes JP Morgan look good among bank stocks to buy now. According to JP Morgan CFO Jennifer Piepszak, “First off, our customers and clients continue to demonstrate strong financial resilience in the face of an unprecedented pandemic as evidenced in our credit metrics thus far. We saw continued momentum in investment banking and grew our share to 9.2%. In CIB markets, revenue was up 20% year on year, driven by strong client activity and elevated volatility in the quarter. And in AWM, we had record revenue of 10% year on year. On deposits, we saw another quarter of strong growth up 35% year on year, and 6% sequentially. And Fed balance sheet expansion continued to increase the overall amount of cash in the system while loan growth remains muted at 1% growth year on year and quarter on quarter.”
JP Morgan’s stock closed the trading day of 19th February 2021 at $148, up 8.9% for the preceding 30 days. Bank of America’s stock closed at $34.54 on the same day, up 6.8% for the preceding month. Meanwhile, Citigroup’s stock was up 4% on a 1-month basis, having closed at $65 on 19th February 2021.