JPMorgan’s earnings beat estimates due to consolidation from investment banking


Reuters. – JPMorgan Chase & Co reported a 14% drop in fourth-quarter earnings on Friday, But it beat analysts’ estimates, buoyed by the stellar performance of its banking unit From the investment that compensated for the delay in the stockbroking unit.

America’s largest bank, whose fortunes are often seen as a measure of the health of the American economy, reported a profit of $10.4 billion, or $3.33 per share, for the quarter ended December 31, Compared to earnings of $12.1 billion, or $3.79 per share, in the same period last year.

Analysts, on average, expected earnings of $3.01 per share, according to Refinitiv.

JPMorgan also reported a 28% jump in investment banking revenue, while brokerage revenue fell 13%.

Revenue was flat at $30.3 billion. The bank’s profits were also enhanced by freeing up reserves of 1800 million of dollars.

During the quarter, JPMorgan pulled more money than it set aside during the height of the pandemic in anticipation of an expected wave of loan defaults.

But this did not happen, thanks to a consumer-friendly monetary policy and government stimulus controls that boosted consumer spending, toOr it allowed banks to release billions of their reserves for credit losses.

Major US lenders benefited from increased consumer spending, while their trading subsidiaries benefited from the extraordinary volatility in financial markets last year.

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However, high inflation and a potential economic slowdown caused by the omicron variant of the coronavirus could hamper earnings growth in the coming months.

As mentioned by other large US banks including Citigroup and Wells Fargo, the report Your results on Friday. Goldman Sachs, Wall Street’s largest investment bank, will report earnings on Tuesday, while Morgan Stanley and Bank of America They complete earnings season on Wednesday.

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