Investing

This Is How Much Money JPMorgan Makes Every Minute

Trey Thoelcke

Published: April 11, 2024 7:25 am

JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon warns in his latest letter to shareholders that inflation and interest rates may remain high, and he predicts that artificial intelligence could be as transformative as the internet or even electricity. Wall Street holds Dimon in high regard, so his words receive a lot of attention. Meanwhile, the big bank’s board of directors reportedly considers CEO transition a top priority and has named some possible successors.

The focus here is on the company, specifically how much money it makes every minute. Let’s take a look.

How Does JPMorgan Make Its Money?

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One of the world’s oldest, largest, and best-known financial institutions, this big bank currently operates in four segments that focus on consumer and community banking, corporate and investment banking, commercial banking, and asset and wealth management. It serves millions of customers, predominantly in the United States, and many of the world’s most prominent corporate, institutional, and government clients. The company was founded in 1799 and has been public since 1978. Its headquarters are in New York City.

More than 40% of JPMorgan’s revenue comes from its consumer and community banking, which includes more than 5,000 Chase Bank branches. Almost as much revenue is generated by its corporate and investment banking segment, and the other two segments make up the balance.

Here is a look at annual revenue and revenue per minute for the past five years:

How Much Does JPMorgan Really Make?

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Revenue is not the full picture, of course. Net income, also called profits or earnings, is what is left after expenses such as cost of goods sold, taxes, and interest are subtracted. In other words, it is the bottom line (of the income statement), as opposed to revenue, the top line.

Quarterly operating expenses totaled less than $30 billion as the COVID-19 shutdown occurred. By the end of that year, they were a little more than half that much. However, these expenses have risen again, and sharply, coming in at more than $50 billion by the end of last year. Quarterly revenue was nearly $62 billion at the same time. So how has that affected the annual bottom line?

Here is a look at annual net income and net income per minute for the past five years:

How Has JPMorgan Stock Fared?

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Shares were changing hands for about $55 apiece a decade ago. The stock is up about 249% since then to above $195 a share. The shares recently hit an all-time high of $200.94. But the ride for investors has not been smooth, as the chart for the past five years shows plenty of volatility.

The consensus price target of $205.00 indicates that analysts anticipate the share price will increase by about 5% in the next 12 months. Note that the high price target is $230, but 13 of the 28 analysts (fewer than half) who follow the stock recommend buying shares. (See which
five dividend blue chips J.P. Morgan has as top 2024 picks.)

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