JPMorgan Chase Release News Of Highest Quarterly Profit In The Company's History


Profit jumped 42% to $12.14 billion that translates to $3.79/share (analyst predicted $2.62/share).

The previous year JPMorgan had reported a quarterly profit of $8.52 billion, or $2.57 a share.

The country's largest bank reported revenue of $29.22 billion for the quarter, easily beating the analysts expectations for $28.67 billion. JPMorgan posted record revenue of $119.54 billion, up 4% from 2019.

Due to the pandemic the bank was forced to put aside billions of dollars for potential loan losses earlier in the year. In the fourth quarter, the bank was able to take down some of those buffers and pulled $2.9 billion of its reserves. The bank said loan charge-offs fell from both the third quarter and prior-year periods, evidence that 10 months into the pandemic customers are still paying.

JPMorgan Chief Executive Jamie Dimon said the reserve release reflected the impact of vaccines and fiscal stimulus plans, but the bank remains positioned for “significant near-term economic uncertainty.”

Profit rose 82% to $5.35 billion for the latest quarter, and notched $17.09 billion for the year. Fourth-quarter revenue rose 17% to $11.35 billion. Revenue for the year was $49.28 billion, topping what had been a record $39.27 billion in 2019. Trading revenue rose 20% in the quarter, and investment banking fees increased 34%. On the consumer side, fourth-quarter profit rose 3% to $4.33 billion and revenue fell 8%. And in asset and wealth management, profit fell 2% to $786 million.

The difference between what it collects on loans and what it pays for deposits fell to 1.80% in the quarter from 2.38% a year ago. Deposits surged another 7% from the previous quarter to $2.14 trillion as companies and consumers looked for a safe place to store their money. The bank took in a total of $582 billion in deposits for the year.

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Economics, Finance and Investing