Investment banking helps drive JPMorgan to record annual profits

JPMorgan Chase reported internet earnings for the final three months of 2021 forward of analysts’ expectations, pushing the US banking large to report full-year earnings.

In fourth-quarter earnings on Friday, the biggest US lender mentioned internet earnings was $10.4bn, or $3.33 per share. This was down from $12.1bn, or $3.79 per share, in the identical interval final 12 months, however nonetheless forward of analysts’ common forecast of $9.36bn, or $2.99 per share, based on consensus information compiled by Bloomberg.

Total for 2021, internet revenue got here in at a report $48.3bn, bolstered by its largest-ever haul of funding banking charges and much decrease losses on loans in the course of the pandemic than the financial institution had anticipated.

Jamie Dimon, JPMorgan chief govt, struck an upbeat tone for the 12 months forward.

“The economic system continues to do fairly properly regardless of headwinds associated to the Omicron variant, inflation and provide chain bottlenecks,” Dimon mentioned in a press release.

“Credit score continues to be wholesome with exceptionally low internet charge-offs, and we stay optimistic on US financial progress as enterprise sentiment is upbeat and customers are benefiting from job and wage progress.”

JPMorgan reported managed revenues of $30.3bn for the fourth quarter, up barely from $30.16bn a 12 months earlier and roughly according to analysts’ forecast for $30bn.

Fourth-quarter funding banking income was up 28 per cent at $3.2bn, in comparison with analysts’ estimates for $3.1bn, amid a worldwide increase in dealmaking exercise.

Income in JPMorgan’s buying and selling division, which had a bumper 12 months in 2020 attributable to heavy quantity throughout market swings, was down 11 per cent at $5.3bn, however nonetheless above pre-pandemic ranges. Analysts had forecast income to be $5.36bn. 

Earnings for 2021 and the quarter had been flattered by releases of reserves JPMorgan and different banks had put aside to cowl potential losses from loans which they feared may flip bitter as a result of pandemic.

Within the fourth quarter, JPMorgan mentioned it had launched an extra $1.8bn in credit score reserves. Adjusted for that, internet earnings was $9bn.


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