J.P. Morgan has Best Year Ever with Profit of $8.52 Billion


J.P. Morgan increases 9% in 2019 for its best year ever on the back of its strong retail bank.

JPMorgan Chase & Co.’s fourth-quarter profit rose, closing out the bank’s best year ever which means that the economy may still have some gas left.

The nation’s largest bank reported a profit of $8.52 billion, or $2.57 a share. Analysts polled by FactSet had expected earnings of $2.35 a share. A year earlier, Up $1.52 billion and added over a $1.00 to their earnings.

Revenue increased 9% to $28.33 billion from $26.11 billion a year ago, topping analysts’ expectations for $27.87 billion.

JPMorgan’s giant retail bank which does business with around half of all U.S. consumers continued to power the bank despite falling interest rates that cut into lending margins. The bank’s customers spent more during the holiday season, boosting its credit-card business, and took advantage of low-interest rates to take out mortgages. JP Morgan Chase has the mandate to market their mortgages. 

Growth was especially strong in JPMorgan’s corporate and investment bank, where revenue rose 31% to $9.47 billion. That was partly because of an easy comparison: Year-ago results were hampered by dismal trading across the industry, particularly in bonds, as market turmoil dried up volume.

Early in the China embargo, profits fell 9% in JPMorgan’s commercial bank, which caters to smaller companies than its corporate and investment bank.

The Federal Reserve lowered its benchmark rate in October, its third cut in 2019, cutting into JPMorgan’s lending margins. Falling interest rates are a mixed bag for banks: While they tend to reduce what banks can charge for loans, they also can spur demand for loans and lower deposit costs. JPM is up close to 40%.

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Economics, Finance and Investing