JPMorgan Chase Q4 Profit Rises; Results Top Estimates
NEW YORK CITY (dpa-AFX) - JPMorgan Chase & Co.
(JPM) reported a profit for the fourth-quarter that grew 24 percent from last year reflecting higher bond-trading revenue. Quarterly revenue rose 2 percent. The latest-quarter results included a tax benefit of $475 million related to the utilization of certain deferred tax assets. Both earnings per share and revenue for the quarter Topped analysts' expectations.
Jamie Dimon, Chairman and CEO, said, "Our results this quarter were a strong end to another record year, reflecting our intense client focus and solid performance across our businesses. In the Consumer business, we had double digit growth in deposits and core loan balances, our credit card sales volume was a record, and for the year we had over $1 trillion of merchant processing volume."
In the Friday pre-market trade, JPM is currently trading at $86.52, up $0.28 or 0.32 percent.
Net income for the fourth-quarter rose 24 percent to $6.73 billion, from $5.43 billion, with earnings per share improving to $1.71 per share $1.32 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.44 per share for the fourth-quarter. Analysts' estimates typically exclude special items.
The provision for credit losses was $864 million, down from $1.3 billion, due to net reserve releases in the current quarter of approximately $400 million across Consumer and Wholesale, versus reserve increases in the prior-year quarter.
The reserve releases reflected a decrease in Consumer reserves of approximately $250 million primarily driven by releases in Mortgage Banking, partially of fset by increases in Card and Consumer & Business Banking. The Wholesale provision was a benefit, primarily driven by releases in the Oil & Gas and Metals & Mining portfolios.
Net revenue on a reported basis grew 2% to $23.38 billion, from $22.89 billion in the previous year. On a Managed basis, total net revenue was $24.33 billion, up 2% from $23.75 billion in the prior year. Wall Street expected revenues of $23.95 billion.
Net interest income was $12.1 billion, up 5%, primarily driven by loan growth and the net impact of higher rates, partially offset by lower investment securities balances. Noninterest revenue was $12.3 billion, flat compared with the prior-year quarter.
Noninterest expense was $13.8 billion, down 3%, primarily driven by lower legal expense.
In Corporate & Investment Bank, net income was $3.4 billion, up $1.7 billion, reflecting higher net revenue, lower noninterest expense, lower provision for credit losses and a tax benefit related to the utilization of certain deferred tax assets. Markets & Investor Services revenue was $5.7 billion, up 32%, largely driven by higher Markets revenue, up 24%. Fixed Income Markets revenue was up 31% reflecting broad-based strength across products.
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