JPMorgan earnings beat estimates on boost from investment banking

Reuters.- JPMorgan Chase & Co reported a 14% drop in fourth-quarter profit on Friday, but beat analyst estimates, helped by stellar performance at its banking unit of investment that compensated for a lag in its stock brokerage unit.

America’s largest bank, whose fortunes are often seen as a barometer of the health of the US economy, posted a profit of $10.4 billion, or $3.33 per share, in the quarter ended December 31, compared to profit of $12.1 billion, or $3.79 per share, in the same period a year ago.

Analysts on average had expected earnings of $3.01 per share, according to Refinitiv.

JPMorgan also reported a 28% jump in investment banking revenue, while brokerage revenue fell 13%.

Revenues were almost flat at $30.3 billion. The bank’s profits were also boosted by the release of reserves of 1,800 million of dollars.

During the quarter, JPMorgan withdrew more funds than it had set aside during the height of the pandemic in anticipation of an expected wave of loan defaults.

But that did not happen, thanks to a consumer-friendly monetary policy and government stimulus checks that boosted consumer spending, lor that it allowed banks to release billions of their reserve for credit losses.

Large US lenders have benefited from higher consumer spending, while their trading subsidiaries benefited from exceptional volatility in financial markets last year.

Follow the information on business and news in Forbes Mexico

However, soaring inflation and a possible economic slowdown induced by the omicron variant of the coronavirus could hamper earnings growth in the coming months.

Other large US banks including Citigroup and Wells Fargo also report your results on Friday. Goldman Sachs, Wall Street’s top investment bank, will report earnings on Tuesday, while Morgan Stanley and Bank of America they complete the earnings season on Wednesday.

Follow us on Google News to always stay informed

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker