Chase announced on Wednesday that it plans to hire 500 bankers over the next two years. Chase is JPMorgan’s (NYSE:JPM) U.S. consumer and commercial banking business. Through the hiring, the bank plans to strengthen its offerings for small businesses. However, soon after this hiring announcement, Reuters reported that the financial services giant had laid off hundreds of employees.
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The bank eliminated positions in the Mortgage business. A Chase spokesperson told Reuters that the move is part of the company’s strategy to adjust its workforce according to business needs.
Earlier, JPM’s CEO Jamie Dimon indicated that the banking giant would stick to its hiring plan in 2023 despite weakness in the Investment Banking division. Meanwhile, its CFO Jeremy Barnum hinted that the bank could see a modest increase in its headcount. However, Barnum added that there could be adjustments at times.
On the financial front, JPMorgan delivered net revenue of $35.6 billion, up 17% year-over-year in Q4. This growth reflects the 48% increase in net interest income (NII) on the back of higher interest rates. Meanwhile, its earnings of $3.57 per share improved sequentially and year-over-year despite higher provisions for credit losses. Also, it surpassed the Street’s projection of $3.08.
Is JPMorgan Chase a Buy or Sell?
The modest increase in loans and higher interest rates will likely support the revenue and earnings of JPM in 2023. However, the weakness in the macro environment could drive provisions for credit losses higher and pressure earnings.
JPM stock commands a Moderate Buy consensus rating on TipRanks, reflecting 10 buy and five Hold recommendations. Moreover, the average price target of $155.47 implies 8.99% upside potential.
