AFP, New York :
Earnings at JPMorgan Chase jumped in the fourth quarter, but not as much as expected due to weak trading activity and increased technology spending, according to results released Tuesday.
Net income surged 67 percent to $7.1 billion, with the year-ago period hit by one-time accounting costs from US tax reform.
Revenues rose four percent to $26.8 billion.
Earnings got a lift from higher net interest income following Federal Reserve interest rate hikes, with the bank generating higher income from credit cards and auto leases. The bank also notched an increase in overall loans.
But earnings were dented somewhat by increased spending on technology and marketing, as well as the setting aside of more funds for bad loans.
JPMorgan also suffered a drop in some of its trading businesses, especially fixed income trading, which saw low activity amid market volatility in December. Rival bank Citigroup also cited this factor in earnings on Monday.
Chief Executive Jamie Dimon termed 2018 “another strong year” and called on political leaders to work together, implicitly acknowledging a government shutdown now in its fourth week amid fighting in Washington.
“As we head into 2019, we urge our country’s leaders to strike a collaborative, constructive tone, which would reinforce already-strong consumer and business sentiment. Businesses, government and communities need to work together to solve problems and help strengthen the economy for the benefit of everyone,” Dimon said in a statement.
Shares fell 1.8 percent to $99.15 in pre-market trading.
Earnings at JPMorgan Chase jumped in the fourth quarter, but not as much as expected due to weak trading activity and increased technology spending, according to results released Tuesday.
Net income surged 67 percent to $7.1 billion, with the year-ago period hit by one-time accounting costs from US tax reform.
Revenues rose four percent to $26.8 billion.
Earnings got a lift from higher net interest income following Federal Reserve interest rate hikes, with the bank generating higher income from credit cards and auto leases. The bank also notched an increase in overall loans.
But earnings were dented somewhat by increased spending on technology and marketing, as well as the setting aside of more funds for bad loans.
JPMorgan also suffered a drop in some of its trading businesses, especially fixed income trading, which saw low activity amid market volatility in December. Rival bank Citigroup also cited this factor in earnings on Monday.
Chief Executive Jamie Dimon termed 2018 “another strong year” and called on political leaders to work together, implicitly acknowledging a government shutdown now in its fourth week amid fighting in Washington.
“As we head into 2019, we urge our country’s leaders to strike a collaborative, constructive tone, which would reinforce already-strong consumer and business sentiment. Businesses, government and communities need to work together to solve problems and help strengthen the economy for the benefit of everyone,” Dimon said in a statement.
Shares fell 1.8 percent to $99.15 in pre-market trading.
