JPMorgan Q4 Earnings Jump 9% Amid Apple Card Acquisition

New York: JPMorgan Chase has announced a 9% increase in its fourth-quarter profit on an adjusted basis, buoyed by a strong U.S. economy and robust performance in its consumer and investment banking segments.

The largest bank in the U.S. reported earnings of $13.03 billion, equating to $4.63 per share for the quarter. These results reflected a one-off charge of 60 cents per share resulting from its acquisition of the Apple Card credit card portfolio from Goldman Sachs.

Under the terms of the deal, JPMorgan allocated $2.2 billion in loan-loss reserves to its balance sheet to prepare for potential future losses from the Apple Card venture. Without this reserve, the bank's adjusted profit reached $5.23 per share, exceeding analysts' expectations of $4.85 per share, according to FactSet.

Quarterly revenue saw a year-on-year increase of 7% to $45.8 billion, reflecting robust consumer spending and steady business activity.

CEO Jamie Dimon expressed optimism regarding the overall U.S. economy, even with signs of softening in job markets. “Conditions don’t seem to be deteriorating,” Dimon stated. “Consumers are still spending, and businesses are generally in good shape. We expect these trends to persist, aided by fiscal stimulus, deregulation, and recent monetary policy actions.”

Despite these strong figures, JPMorgan’s shares dropped nearly 3% in morning trading, closing at approximately $314.74, as investors began to consider wider political and regulatory uncertainties.

JPMorgan is one of the first major American banks to release its earnings this season. Furthermore, attention shifts to Washington, where President Donald Trump reiterated his backing for proposed legislation that would cap credit card interest rates at 10%.

Additionally, Federal Reserve Chair Jerome Powell revealed that the Justice Department has issued subpoenas concerning his comments about Fed’s building renovations, highlighting rising tensions between the White House and the central bank.