Unraveling the Earnings of Banks and Airlines

We take a closer look at how JPMorgan’s revenue continues to evolve, Bank of America’s financial performance, a deep dive into Delta Airlines, and find out who leads the banking sector

Hey everyone — Inverse Cramer, MasterTrader, & Wiz here! Together we’ve teamed up to bring you a brand new newsletter that helps visualize finance. Each edition will feature financial data in bite-sized portions.

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RECENT EARNINGS BREAKDOWN

Dissecting JPMorgan’s ($JPM) Non-Interest Revenue Streams

Key Highlights from their most recent quarter.

  1. Net Income: $9.3 billion, a 15% decrease from $11 billion in Q4 2022.

  2. Net Revenue: $39.9 billion, up 12% from $35.6 billion in Q4 2022.

  3. Non-interest Expense: $24.5 billion, a 29% increase from $19 billion in Q4 2022.

  4. Provision for Credit Losses: $2.8 billion, a 21% increase from $2.3 billion in Q4 2022.

  5. Earnings Per Share: $3.04, down 15% from $3.57 in Q4 2022.

  6. Consumer & Community Banking Net Income: $4.8 billion, up 5% from $4.6 billion in Q4 2022.

  7. Corporate & Investment Bank Net Income: $2.5 billion, down 24% from $3.3 billion in Q4 2022.

  8. Commercial Banking Net Income: $1.7 billion, up 16% from $1.4 billion in Q4 2022.

  9. Asset & Wealth Management Net Income: $1.2 billion, up 7% from $1.1 billion in Q4 2022.

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HOW DO THEY MAKE MONEY

Bank of America ($BAC) - How Do They Make Money?

Key Highlights from their most recent quarter.

  1. Net Interest Income (Q4 YoY): Increased from $14.68 billion in Q4 2022 to $13.95 billion in Q4 2023, a decrease of 4.98%.

  2. Non-interest Income (Q4 YoY): Declined from $9.85 billion in Q4 2022 to $8.01 billion in Q4 2023, a decrease of 18.67%.

  3. Total Revenue (Q4 YoY): Fell from $24.53 billion in Q4 2022 to $21.96 billion in Q4 2023, down 10.49%.

  4. Provision for Credit Losses (Q4 YoY): Slightly increased from $1.09 billion in Q4 2022 to $1.10 billion in Q4 2023, a growth of 1.10%.

  5. Non-interest Expense (Q4 YoY): Rose from $15.54 billion in Q4 2022 to $17.73 billion in Q4 2023, an increase of 14.08%.

  6. Net Income (Q4 YoY): Decreased significantly from $7.13 billion in Q4 2022 to $3.14 billion in Q4 2023, a drop of 55.95%.

  7. Diluted Earnings Per Share (Q4 YoY): Dropped from $0.85 in Q4 2022 to $0.35 in Q4 2023, a decrease of 58.82%.

  8. Return on Average Assets (Annual YoY): Decreased from 0.92% in 2022 to 0.84% in 2023.

  9. Return on Average Common Equity (Annual YoY): Declined from 11.24% in 2022 to 9.75% in 2023.

  10. Efficiency Ratio (Annual YoY): Increased from 63.36% in 2022 to 66.79% in 2023, indicating decreased efficiency.

COMPANY DEEP DIVE

Detailed Breakdown of Delta Airlines’ ($DAL) Revenue Segments and Income Statement

  1. Passenger Revenue: Increased by 12% YoY to $12.17 billion from $10.89 billion.

  2. Cargo Revenue: Decreased by 19% YoY to $1.86 billion from $2.30 billion.

  3. Total Revenue per Available Seat Mile (TRASM): Rose by 6% to 20.78 cents from 19.55 cents.

  1. Total Operating Revenue: $14.2 billion, up 6% from $13.4 billion in Q4 2022.

  2. Net Income: $2.03 billion, a significant increase from $828 million in Q4 2022.

  3. Diluted Earnings Per Share: $3.16, more than double from $1.29 in Q4 2022.

  4. Operating Cash Flow: $545 million, a decrease from $1.2 billion in Q4 2022.

  5. Adjusted Net Debt: Reduced to $21.4 billion, from $22.3 billion at the end of 2022.

  6. Capital Expenditures: $1.2 billion, compared to $2.1 billion in Q4 2022.

  7. Free Cash Flow: Improved significantly, reaching $2 billion, compared to $1.3 billion in the previous year.

INDUSTRY SNAPSHOT

Recent Quarter Revenue Comparison of Top U.S. Banks

JPMorgan towers over its peers with a previous quarter revenue of $38.4 billion, substantially outstripping Bank of America's $25.2 billion, its closest competitor. This financial titan's revenue muscle speaks to its vast global reach and diversified financial services, which include a leading investment bank and a massive consumer banking presence. The gap widens further when compared to Wells Fargo and Citigroup, which hover around the $20 billion mark, underscoring JPMorgan's dominant market position. JPMorgan's robust revenue streams are a testament to its strategic initiatives and the acumen with which it navigates the complex financial landscapes.

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HISTORICAL RETURN

How $10,000 Invested in JPMorgan ($JPM) Would Have Returned Over The Last Decade

The bank’s stock went from $41.89 to $169.06 per share over the past decade, returning 303.59% with dividends reinvested. $10,000 invested ten years ago would have returned you a healthy $40,360 — that’s 14.84% annualized! JPMorgan continues to dominate the financial sector with CEO Jamie Dimon at the helm since 2005.

WORD FROM WIZ

That’s all we have for you in today’s edition of ChartWiz. Going forward we’ll be sending once per week on Sunday’s. If you found this valuable, please consider forwarding it to a friend.

Again we cannot thank you enough for subscribing, if there’s anything you’d like to see in this newsletter that we don’t have, please send us a reply or DM us and we’ll see what we can do!

-Wiz

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