JPMorgan Chase lost 14% in fourth-quarter profit, but the result beat analysts’ estimates, helped by strong performance at the investment banking unit.
The largest US bank, whose performance is often seen as a barometer of the country’s economy, saw a 28% jump in investment banking revenue, while overall trading revenue dropped 13%.
JPMorgan shares, which are up 6% this year, are down 5% in pre-trade Friday trading.
“The economy continues to do very well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks,” said JPMorgan Chief Executive Jamie Dimon.
The pullback in trading activity in the fourth quarter was dampened by yet another strong showing from the investment banking area, as M&A transactions broke records in 2021 and pushed unit commissions to a record high in the first half of the year.
During the quarter, JPMorgan maintained its position as the world’s second-largest M&A advisory provider after Goldman Sachs, according to Refinitiv.
The tables classify financial services companies by the volume of merger and acquisition advisory fees they generate.
Overall, JPM earned $10.4 billion, or $3.33 per share, for the quarter ended December 31. Analysts had estimated earnings of $3.01 per share, according to Refinitiv data.
Revenue remained almost flat at $30.3 billion. The bank’s profit was also boosted by the release of $1.8 billion in provisions.
Reference: CNN Brasil
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