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

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.