NEW YORK (AP) – JPMorgan Chase & Co. said Tuesday that fourth-quarter profits rose 9% on an adjusted basis as the bank continues to broadly benefit from the strong economy in both its consumer and investment banking divisions.
The bank’s profit was $13.03 billion, or $4.63 per share. The results included a one-time hit of 60 cents per share to results from the stock acquisition by JPMorgan Chase & Co. Apple Card Credit Card Portfolio From Goldman Sachs. That’s because the bank has added $2.2 billion in loan loss reserves to its balance sheet to cover the risk of underwriting Apple Card, effectively drawing down cash to cover potential losses.
Excluding loan loss provisions, Chase earned $5.23 per share. Analysts had expected $4.85 per share, according to FactSet, but some did not update their forecasts after Chase acquired the Apple Card portfolio last week.
In a statement, Dimon expressed continued optimism about the overall health of the U.S. economy.
“Although the labor market is softening, the situation does not appear to be worsening,” he said. “Meanwhile, consumers continue to spend and businesses remain generally healthy. These conditions may continue for some time, especially with continued fiscal stimulus, the benefits of regulatory relief, and the Fed’s recent monetary policy.”
The bank’s revenue for the quarter was $45.8 billion, an increase of 7% from a year earlier.
JPMorgan and Bank of New York Mellon will begin their bank closing sessions this week. Investors will be paying close attention to the health of Wall Street, but recent developments in Washington could divert their attention. President Donald Trump announced Friday: Limit credit card interest to 10% And I support legislation in Congress to do so.
Chairman of the Federal Reserve Board Jerome Powell On Sunday, the Justice Department announced it had sent subpoenas to the central bank and threatened criminal charges over testimony this summer about renovations to the Fed’s buildings.
The move marks an unprecedented escalation in President Trump’s battle with the Fed. The Federal Reserve is an independent agency that President Trump has repeatedly attacked for not cutting key interest rates as sharply as he would have liked.
