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JP Morgan Quarterly Profit Increased 1.7 Times in the 4th Quarter

JP Morgan Quarterly Profit Increased 1.7 Times in the 4th Quarter

Published by InvestorGreg Editorial Team

January 17th, 2019

The net profit of JP Morgan Chase & Co., the largest US bank in terms of assets, grew 1.7 times (by 67%) in the 4th quarter of 2018 and amounted to $ 7.066 billion, or $ 1.98 per share, compared to $4.232 billion, or $1.07 per share, received during the same period of the previous year.

According to the press release from the Bank, its revenue increased by 4.1% to $26.804 billion from $25.454 billion.

However, these figures did not meet market expectations. Analysts polled by FactSet on average estimated the Bank net profit at $2.2 per share, and revenue at $26.84 billion.

The net interest income of the Bank increased by 9% to $ 14.5 billion in the last quarter, due to higher interest rates and credit growth. The non-interest income fell down by 1% to $12.3 billion.

JP Morgan reserves to cover potential losses on loans in the last quarter increased by $240 million compared to the same period of the previous year and reached $1.5 billion.

The average return on equity (ROE) in October-December was 12% versus 14% in the previous three months and 7% in the fourth quarter of 2017.

JP Morgan retail banking outlet’s net profit increased by 53% reaching $4.03 billion; its revenue increased by 13% to $13.7 billion.

The net profit of the corporate investment bank (CIB) fell down by 15% to $1.98 billion; its revenue decreased by 4% to $7.24 billion.

The bank returned $8.3 billion to its shareholders in the last quarter including $5.7 billion due to the buyback of its own shares.

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InvestorGreg Editorial Team

The InvestorGreg Editorial Team is a group of financial writers and analysts who cover the worlds of finance and investment. Read more

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