JPMorgan Chase & Co reported a 24% rise in fourth-quarter profits yesterday, beating analyst expectations, as its Wall Street business benefited from a surge in trading activity following the US election.
JPMorgan, the largest US lender, said earnings rose to $6.7bn, or $1.71 per share, from $5.4bn, or $1.32 per share, in the year-ago period.
Excluding an atypical tax benefit, the bank earned $1.58 per share, well above the average analyst estimate of $1.44 per share, according to Thomson Reuters I/B/E/S.
JPMorgan has one of the largest global investment banks, which affects its earnings significantly when market activity picks up or declines.
Along with other big banks, it was widely expected to benefit from a wave of trading in stocks and bonds following Donald Trump’s stunning victory in the presidential election on November 8.
Revenue from fixed-income trading — JPMorgan’s most volatile business — rose 31% to $3.4bn, while stock trading revenue increased 8% to $1.2bn.
JPMorgan said its net interest income rose 5% during the fourth quarter to $12.1bn, thanks to an uptick in rates, as well as more lending.
The bank’s total net revenue rose 2.5% to $24.33bn, beating analysts’ average estimate of $23.95bn.
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