JP Morgan Chase Fourth-quarter results released Tuesday beat expectations, with revenue from the bank’s trading operations higher than expected.
Here’s what the company reported:
Adjusted earnings: $5.23 per share, compared to LSEGR’s consensus estimate of $5.00; revenue: $46.77 billion, compared to LSEG’s estimate of $46.21 billion.
The company said profit fell 7% to $13.03 billion, or $4.63 per share, due to a pre-announced $2.2 billion provision related to the acquisition of the Apple Card loan portfolio. goldman sachs. Excluding the 60 cents per share impact from the transaction, adjusted earnings were $5.23, beating analysts’ expectations.
Net interest income also rose 7% to $25.1 billion, according to Street Accounts, and companywide sales rose 7% to $46.77 billion, roughly in line with analyst expectations for NII.
Equity trading revenue rose 40% to $2.9 billion, about $350 million more than analysts expected, the company said, citing strong performance across its businesses, particularly in its hedge fund business. Fixed income trading revenue rose 7% to $5.4 billion, beating expectations by about $110 million, according to Street Accounts.
However, the investment banking division appeared disappointed as fees fell 5% to $2.3 billion, about $210 million less than Street accounts expected.
The bank’s stock price fell 3% in morning trading.
Banks have enjoyed a Goldilocks-type environment in recent quarters, with a rebound in Wall Street trading, lower interest rates, stable consumer credit and deregulation providing tailwinds for the sector. The high level of stock prices also energized banks’ financial management departments.
of KBW Bank Index It rose 29% last year, the second year in a row that the big bank benchmark outpaced the bank’s rise. S&P500.
“Potential danger”
JPMorgan Chase CEO Jamie Dimon said in remarks on the earnings call that the U.S. economy is resilient.
“While the labor market is softening, things don’t appear to be getting worse,” Dimon said. “Meanwhile, consumers continue to spend and businesses generally remain healthy.”
“These conditions could persist for some time, especially with continued fiscal stimulus, the benefits of regulatory relief, and the Fed’s recent monetary policy,” he said. “However, as always, we remain cautious and the market appears to be underestimating the potential dangers posed by the complex geopolitical situation, the risk of persistent inflation, and high asset prices.”
The bank said it expects net interest income to be about $103 billion and adjusted expenses to be about $105 billion for the full year 2026, but both metrics are “market dependent.”
Analysts will be watching to see how much of the banking industry’s momentum from 2025 is expected to carry over into this year. Of particular concern are whether spending is cracking and guidance on the strength of Wall Street’s dealmaking amid signs of weakening labor markets.
bank of america, citygroup and wells fargo We plan to report the results on Wednesday. goldman sachs and morgan stanley Thursday’s report.
