JPMorgan Chase & Co (JPM) and Bank of America Corp (BAC): Q4 2024 earnings reports and stock forecasts

JPMorgan Chase & Co. (NYSE: JPM) and Bank of America (NYSE: BAC) exceeded expectations with stronger-than-anticipated earnings, driving their shares higher to test all-time highs. The banks’ management expects improved financial performance in 2025, which could boost their share pieces further.

This article highlights the key data from JPMorgan Chase & Co. and Bank of America’s quarterly reports and provides a Q1 2025 forecast for JPMorgan Chase & Co. and Bank of America’s stocks based on their recent stock performance.

JPMorgan Chase & Co. Q4 2024 report

On 15 January 2025, JPMorgan Chase & Co. reported record quarterly earnings for Q4 2024. Net income surged by 50%, reaching 14.0 billion USD. Earnings per share increased to 4.81 USD from 3.04 USD a year earlier, exceeding Wall Street expectations of 4.09 USD.

CEO Jamie Dimon highlighted the bank’s resilience amid economic instability, emphasising income diversification through investments in technology and personnel. However, he cautioned about geopolitical risks and potential regulatory changes.

CFO Jeremy Barnum underlined robust investment banking and trading results, attributing them to increased deal activity and favourable market conditions. At the same time, he noted a minor decrease in net interest income due to lower rates.

The CEO of Consumer Banking, Jennifer Roberts, expressed satisfaction with consumer spending but acknowledged the challenges of managing credit risks amid a potential economic slowdown.

For 2025, the bank expects net interest income to stabilise at 90.0 billion USD, excluding markets, and 94.0 billion when market operations are included. Expenses are projected to rise to 95.0 billion USD due to investments in technology and personnel, focusing on higher efficiency and cost control.

Revenue is projected to stem from higher fees for asset management and banking services, offsetting potential pressure on net interest income. The bank plans a cautious stock buyback and will likely slightly increase dividend payouts.

The bank’s management is moderately optimistic about 2025, expecting modest economic growth. At the same time, JPMorgan Chase & Co. is preparing for various economic development scenarios amid potential political changes.

JPMorgan Chase & Co.’s stock price forecast for Q1 2025

JPMorgan Chase & Co.’s stock is trading within an ascending channel on the daily timeframe. The quarterly earnings report drove the shares upwards to test the channel’s upper boundary. Based on the current performance of JPMorgan Chase & Co.’s stock, two potential price movement scenarios are considered.

The optimistic forecast for JPMorgan Chase & Co.’s stock suggests a breakout above the channel’s upper line, after which the price could rise by the channel value to 290 USD. Given the robust quarterly report and the bank management’s optimistic forecast for 2025, this scenario is deemed more likely.

The pessimistic outlook for JPMorgan Chase & Co.’s stock predicts a rebound from the channel’s upper line, followed by a decline to the trendline at 225 USD. A breakout below this support level could lead to the stock price dropping to 200 USD.

Bank of America Corp Q4 2024 report

On 16 January 2025, Bank of America (NYSE: BAC) reported strong financial results for Q4 2024. Net income was 6.7 billion USD (0.82 USD per share), beating analysts’ forecasts of 0.77 USD. Quarterly revenue reached 25.3 billion USD, up 15% from last year’s corresponding period. Growth was mostly driven by increased revenue from asset management, investment banking, and sales and trading operations.

CEO Brian Moynihan emphasised the bank’s robust performance across various segments and noted an increase in deposits and the loan portfolio, indicating a positive outlook for 2025. Quarterly net interest income came in at 14.4 billion USD, up 3% from both Q4 2023 and Q3 2024 figures, driven by a favourable deposit environment, loan growth, and the revision of fixed asset rates.

In the 2025 outlook, Bank of America expects further growth in net interest income. According to its analysts, the indicator is projected to rise from 14.5 billion USD in Q1 to 15.5-15.7 billion by the end of 2025, driven by the revision of fixed asset rates and the expansion of the loan portfolio.

The robust Q4 2024 performance and the optimistic outlook for 2025 highlight Bank of America’s resilience and adaptability to dynamic financial conditions.

Bank of America Corp stock price forecast for Q1 2025

In 2024, Bank of America Corp’s stock came under pressure from large sales by Berkshire Hathaway Inc. (NYSE: BRK), but the bank managed to offset the impact through a 21.0 billion USD stock buyback. As a result, since October 2024, Bank of America Corp stock has been trading within an ascending channel on the daily timeframe, approaching an all-time high of 48.00 USD. Based on the current performance of Bank of America Corp’s stock, two potential price movement scenarios are considered for Q1 2025.

The optimistic forecast for Bank of America Corp’s stock suggests a breakout above the 48.00 USD resistance level, followed by further price growth to the channel’s upper line at 54.00. This scenario is deemed more likely as the stock buyback program, 25.0 billion USD of which was allocated in July 2024, continues to operate.

The pessimistic forecast for Bank of America Corp’s stock expects the price to decline to the trendline near the 43.50 USD support level. If it breaks, the share value could drop to 38.00 USD.

Summary

The reports from the largest US banks indicate that the country’s economy remains stable. The optimistic 2025 outlook suggests that the current trend will persist, with banks increasing both financial turnover and profit.

In 2025, the business community expects softer business conditions under the new administration led by Donald Trump, which could boost economic activity. The largest financial institutions could be primary beneficiaries of deregulation. Given this, Bank of America Corp and JPMorgan Chase & Co. shares may continue to gain upward momentum.