JPMorgan Chase smashes expectations on fourth-quarter revenue
The largest US bank put an exclamation point to its 2016.
JPMorgan Chase relied heavily to its improving loan quality and bond trading to lift its fourth-quarter report to a strong finish, beating the consensus expectations of analysts.
The biggest bank in the country, in terms of assets owned, recorded a profit of $6.73 billion in the months covered October to December last year, equivalent to $1.71 per share, higher than the $1.44 per share forecast of analysts polled by Reuters and better than the $5.43 billion, or $1.32 per share recorded a year earlier.
The strong earnings last quarter benefited from an improved credit quality among American corporations and consumer, which aided the firm to collect $400 million revenue from the bad loan reserves coming from the mortgages of the energy and metals sectors.
What was more commendable about the report was the yearly earnings of $24.7 billion, which set a record-high output for the bank as it surpassed the previous all-time record of &24.44 billion in 2015, showing that the bank continued to thrive even in the start of the Donald Trump era.
The New York-based financial firm had a modest fixed-income trading that racked up a 31% surge at $3.37 billion while its equities-trading income showed an increase of 8.1% at $1.15 billion.
After the report, the JPMorgan Chase stock rallied 1.2% at $87.29 in Friday’s session as investors bet that the upcoming Trump policy will result to lower taxes and higher interest rates.