JPMorgan’s profit exceeded estimates on strengthening investment banking

Reuters. – JPMorgan Chase & Co on Friday reported a 14% drop in its fourth-quarter profit, But it beat analysts’ estimates, buoyed by the stellar performance of its banking unit An investment that made up for a lag in the brokerage unit.

America’s largest bank, whose fortunes are often seen as a measure of the health of the American economy, reported a profit of $10.4 billion, or $3.33 per share, for the quarter ended December 31, Compared to earnings of $12.1 billion, or $3.79 per share, in the same period last year.

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

JPMorgan also reported a 28% jump in investment banking revenue, while trading volume was down 13%.

Revenues were almost stable at $30.3 billion. The bank’s profits were also enhanced by freeing up reserves of .1.8 billion of dollars.

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

But this did not happen, thanks to a consumer-friendly monetary policy. and government stimulus controls that boosted consumer spending, toOr it allowed the banks to free up billions of loan loss reserves.

Major US lenders benefited from increased consumer spending, while their brokerage firms benefited from exceptional volatility in financial markets last year.

Follow information about business and current affairs at Forbes Mexico

However, high inflation and a potential economic slowdown caused by the omicron variant of the coronavirus could hamper earnings growth in the coming months.

As mentioned by other large US banks including Citigroup and Wells Fargo, the report Your results on Friday. Goldman Sachs, Wall Street’s largest investment bank, will report earnings on Tuesday, while Morgan Stanley and Bank of America will report They complete the results season on Wednesday.

Follow us on Google News to stay updated