JPMorgan Chase reported fourth-quarter earnings that surpassed analyst expectations, driven by strong trading performance in volatile markets. Adjusted earnings reached $US5.23 per share, exceeding the Wall Street consensus of $US5. However, the bank’s shares experienced a decline due to weaker-than-expected investment banking revenue and anxieties surrounding potential credit card interest rate caps proposed by the Trump administration.
Investment banking fees decreased by 5 per cent compared to the previous year, which saw record profits due to a surge in deal activity. This figure also fell short of Wall Street estimates by 8 per cent, according to UBS analysts. JPMorgan is the largest US bank, offering a wide range of financial services including investment banking, asset management, and consumer banking. The company also provides global financial solutions to corporations and institutions.
Net interest income, representing the difference between loan payments received and deposit interest paid, increased by 7 per cent to $US25.1 billion in the fourth quarter. The bank also recorded a $US2.2 billion ($3.3 billion) provision related to its agreement with Goldman Sachs to assume a credit card partnership with Apple.
Despite the earnings beat, concerns over potential regulatory changes regarding credit card interest rates contributed to the downward pressure on JPMorgan’s stock price. The bank has expressed concerns that such caps could negatively impact both the industry and consumers.
