Post by : Badri Ariffin

New York: JPMorgan Chase has reported a 9% increase in profit for the fourth quarter, driven by a robust U.S. economy and strong performance in both consumer and investment banking sectors.

The largest bank in the U.S. recorded earnings of $13.03 billion, translating to $4.63 per share. This result incorporated a one-time expense of 60 cents per share due to its acquisition of the Apple Card credit card portfolio from Goldman Sachs.

As part of this acquisition, JPMorgan set aside $2.2 billion in loan-loss reserves in anticipation of potential future losses from the Apple Card segment. When excluding this provision, the bank achieved an adjusted profit of $5.23 per share, significantly exceeding analysts' projections of $4.85 per share, according to FactSet.

Quarterly revenue surged by 7% compared to last year, reaching $45.8 billion, a sign of solid consumer expenditure and consistent business activity.

CEO Jamie Dimon expressed optimism regarding the overall health of the U.S. economy, noting, “Conditions do not seem to be deteriorating.” He added, “Consumers are still spending, and businesses generally appear to be in good shape. These trends may persist, aided by fiscal stimulus, deregulation, and recent monetary policy adjustments.”

Despite these favorable results, JPMorgan's stock dipped nearly 3% in morning trading, closing around $314.74, as investors weighed the implications of broader political and regulatory uncertainty.

JPMorgan is among the initial major U.S. banks to report earnings for this quarter. Market focus is now turning to Washington, where President Donald Trump reaffirmed his support for proposed legislation that would limit credit card interest rates to 10%.

Additionally, Federal Reserve Chair Jerome Powell revealed that the Justice Department has issued subpoenas in relation to his testimony concerning the Fed’s facility renovations, marking a significant escalation of tensions between the White House and the central bank.

#Global News