JPMorgan Chase has kicked off Wall Street’s earnings season on a strong note as it revealed its highest ever annual profit and a vigorous rebound in trading revenues in the final three months of last year.
America’s largest bank by assets reported net income of $36.4bn for 2019, up 12 per cent year on year, after making $8.5bn in fourth quarter, far better than the $7.45bn expected by analysts who submitted forecasts to Bloomberg.
Revenues for the quarter came in at $29.2bn on a managed basis, up 9 per cent year on year.
Trading revenues rose 56 per cent year on year to $5bn, led by an 86 per cent rise in fixed income trading revenues, rebounding from a grim performance in the fourth quarter of 2018. JPMorgan’s finance boss Jenn Piepszak had said markets revenues would be “meaningfully up”. Investment banking revenue rose marginally, to $1.8bn, year-on-year.
In the retail bank, the Chase franchise enjoyed a 5 per cent rise in deposits in the quarter, while credit card sales were up 10 per cent year on year, and balances rose over the holiday season.
“The US consumer continues to be in a strong position and we see the benefits of this across our consumer businesses,” chief executive Jamie Dimon said. JPMorgan’s commercial bank also made record revenues for the year.
The bank’s share price has been on a tear in the past year, rising 40 per cent in the 2019 calendar year and continuing its ascent into 2020. JPMorgan’s closing price of $137.20 on Monday was more than double the tangible book per share of $60.98 reported at the end of last year.
Last week analysts at UBS downgraded JPMorgan from a “buy” to a “neutral” rating, claiming “substantial share outperformance” meant there was no longer “sufficient upside” to the stock.
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January 14, 2020 at 07:27PM
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JPMorgan posts record profit in strong start to US earnings season - Financial Times
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