JPMorgan Chase posted net profit for the last three months of 2021 ahead of analysts’ expectations, pushing the US banking giant to post a full-year profit.
In fourth-quarter earnings on Friday, the largest U.S. lender said net income was $10.4 billion, or $3.33 per share. That was down from $12.1 billion, or $3.79 per share, at the same time last year, but still ahead of the average analyst forecast of $9.36 billion. or $2.99 per share, according to consensus data compiled by Bloomberg.
Overall for 2021, net income hit a record $48.3 billion, buoyed by its larger amount of investment banking fees and much lower loan losses during the pandemic than the bank had. foreseen.
Jamie Dimon, chief executive of JPMorgan, struck an optimistic tone for the year ahead.
“The economy continues to do well despite headwinds from the Omicron variant, inflation and supply chain bottlenecks,” Dimon said in a statement.
“Credit continues to be healthy with exceptionally low net charges, and we remain bullish on U.S. economic growth as the business climate is upbeat and consumers benefit from job and wage growth.”
JPMorgan reported managed revenue of $30.3 billion for the fourth quarter, up slightly from $30.16 billion a year earlier and roughly in line with analyst forecasts of $30 billion.
Investment banking revenue in the fourth quarter rose 28% to $3.2 billion, from analysts’ estimates of $3.1 billion, amid a global boom in investment banking. negotiation.
Revenue for JPMorgan’s trading division, which had a bumper year in 2020 due to heavy volume during market swings, fell 11% to $5.3 billion, but still above levels before the pandemic. Analysts had forecast revenue of $5.36 billion.
Earnings for 2021 and the quarter were flattered by reserve releases that JPMorgan and other banks had set aside to cover potential losses on loans they feared would turn sour due to the pandemic.
In the fourth quarter, JPMorgan said it released an additional $1.8 billion in credit reserves. Adjusted for that, net income was $9 billion.