JPMorgan Quarterly Profit Jumps 42%
By David Benoit
JPMorgan Chase & Co. on Friday said fourth-quarter earnings
The bank posted a profit of $12.14 billion, or $3.79 per share,
far past the $2.62 per share forecast by analysts polled by
FactSet. A year earlier, JPMorgan had reported a quarterly profit
of $8.52 billion, or $2.57 a share.
The nation's biggest bank reported revenue of $29.22 billion for
the quarter, up 3% from a year earlier and topping analysts'
expectations for $28.67 billion.
For the full year, through an economic spiral and an uneven
recovery, JPMorgan posted record revenue of $119.54 billion, up 4%
from 2019. The growth was powered by the Wall Street operation,
which churned out stocks and bonds for clients eager to raise
capital and trade securities amid an unsettled economy and
Still, the pandemic's impact on businesses and consumers forced
the bank to put aside billions of dollars for potential loan losses
earlier in the year. Full-year profit fell 20% to $29.13
In the fourth quarter, the bank was able to take down some of
those buffers, pulling out $2.9 billion of its reserves. The
economy has fared better than what executives had feared throughout
the spring and summer.
In a statement, 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."
Investors sold off JPMorgan and other banks early in the
pandemic, worried that loans would go sour. JPMorgan's stock fell
9% in 2020 while the S&P 500 rose 16%, the worst
underperformance for JPMorgan in 30 years. Coronavirus vaccines and
optimism that a Democratic-led Congress would pass more stimulus
have lifted the banks so far in 2021, with JPMorgan up 11%.
Write to David Benoit at email@example.com
(END) Dow Jones Newswires
January 15, 2021 07:33 ET (12:33 GMT)
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