JPMorgan Chase Reports Profit Rose 21% -- Update
January 14 2020 - 6:35AM
Dow Jones News
By David Benoit
JPMorgan Chase & Co. said Tuesday that fourth-quarter profit
jumped 21%.
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, the bank reported a profit of $7.07
billion, or $1.98 per share.
Revenue rose 9% to $28.33 billion from $26.11 billion a year
ago, topping analysts' expectations for $27.87 billion.
Growth was strong in JPMorgan's corporate and investment bank,
with revenue rising 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, when market
turmoil dried up volume.
Banks are struggling with how to deal with continually low
rates. The Federal Reserve cut its benchmark rate again in October,
its third cut last year, and JPMorgan's lending margins fell. Lower
rates tend to reduce what banks can charge for loans, though they
can also fuel demand for loans and lower a bank's deposit
costs.
JPMorgan's net interest income, the amount it makes from lending
minus the interest it pays out, slipped 1% to $14.17 billion. That
was the first year-over-year decline since the third quarter of
2015, just before the Fed began a series of nine rate
increases.
JPMorgan shares soared throughout 2019 to all-time highs, up
more than 40% for the year. Despite the increased cost, the bank
continued buying back stock in 2019, helping lift its per-share
earnings.
Shares rose about 2% to $139.93 in premarket trading
Tuesday.
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Write to David Benoit at david.benoit@wsj.com
(END) Dow Jones Newswires
January 14, 2020 07:20 ET (12:20 GMT)
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