JPMorgan Executing Well In Challenging Times And Still Undervalued


  • JPMorgan posted a good set of earnings for the fourth quarter, with a nearly 10% beat at the pre-provision line and slightly better performance with loan growth and deposit costs.
  • Loan growth is likely to continue slowing from here, while deposit beta is likely to continue to increase, creating some near-term growth headwinds.
  • Management seems willing to be more flexible on its spending plans if revenue slows more than expected, and capital is now sufficient to restart share buybacks.
  • JPMorgan should be able to generate long-term core earnings growth in the mid-single-digits, supporting a near-term fair value into the low-$150s.
JP Morgan Chase and Co


This year is likely to be one where management and business quality, as well as past strategic decisions, really show up in the results of bank companies. Most banks will likely see net interest margins peak between Q4’22 and Q2’23, operating leverage will be

Disclosure: I/we have a beneficial long position in the shares of JPM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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