JPMorgan Chase reported increased revenue and mobile usership in the fourth quarter of 2022 despite a year-over-year decrease in tech spend.
WHY IT MATTERS: The $3.3 trillion bank’s tech spend in Q4 fell 8% YoY to $2.2 billion while total tech spend for 2022 declined 6% YoY to $9.3 billion, according to the bank’s earnings supplement released today.
For the full year 2021, JPMorgan’s tech spend totaled $9.9 billion, dropping 4% YoY, according to the bank’s 2021 earnings supplement.
BY THE NUMBERS: JPMorgan posted for Q4:
- Revenue clocked in at $35.6 billion, up 17% YoY. Additionally, full-year 2022 revenue reached $132 billion, up 6% from 2021;
- Non-interest expenses increased 7% YoY to $19 billion; and
- Mobile usership grew to 49.7 million users, a 9% YoY jump.
NOTEWORTHY: In December, the bank filed suit against Charlie Javice, founder of college financial-planning website Frank, which the bank acquired in 2021. The bank alleges that Javice defrauded it by disclosing a false number of Frank platform users during the acquisition process – despite the bank’s due diligence efforts.
“When you are getting up to bat 300 times a year, you are going to have errors,” Chief Executive Jamie Dimon said today during the bank’s Q4 earnings call. “This thing, in one way or another, it was a huge mistake.”
Although the mistake has caused a headache for the bank, “there are always lessons learned,” Dimon said. “We don’t want our company to be so terrified of errors that we don’t do anything.”
FLASHBACK: The bank announced several acquisitions in 2022 including cloud-based plan management software Global Shares, cloud native payments technology company Renovite Technologies and cloud-based payments fintech Viva Wallet.
FUTURE LOOK: In 2023, factors including higher labor inflation, the annualization of 2022 hires and continued investments in the business – including technology – increase the bank’s adjusted expense outlook to $81 billion, up from $75.9 billion in 2022, according to the earnings presentation.
The new year will also bring a “modest headcount increase,” Chief Financial Officer Jeremy Barnum said during the call. “Which are primarily in connection with executing our investments.”
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