JPMorgan Chase’s (JPM), the largest bank in the United States by assets, began the earnings season for large banks on Tuesday, with fourth-quarter results that exceeded Wall Street estimates.
The bank beat the upper and lower lines, reinforced by higher loans and agreements. The results caused JPM shares to increase by almost 2% from about $ 139.50 on Monday.
Here were the key figures versus expectations, according to analysts polled by Bloomberg.
JPMorgan’s net income for the fourth quarter was $ 8.5 billion, up 21%. Even amid widespread economic uncertainty and market volatility, the bank posted record year-round net income of $ 36.4 billion, or $ 10.72 per share, which makes 2019 its most profitable year.
In a statement, JPMorgan CEO Jamie Dimon highlighted the resilience and strength of American consumers by applauding a “solid year” of record revenue and revenue.
“While we face a continuous high level of complex geopolitical problems, global growth stabilized, albeit at a lower level, and the resolution of some business problems helped support customer and market activity by the end of the year. “said Dimon.
“The US consumer continues in a strong position and we see the benefits of this in our consumer businesses,” he added.
In fact, intense consumer activity was one of the main reasons for JPMorgan’s success during the fourth quarter. The bank’s community and consumer units recorded a 27% increase in customer investment assets and recorded a 5% jump in average deposits.
Meanwhile, credit card sales volumes increased by 10%, which Dimon said was driven by a “robust holiday season” as commercial processing volumes rose 7%.
Net interest income, a measure very often, reached $ 14.3 billion, a 2% decrease amid a combination of lower interest rates, an increase in balance sheets and a boost to net interest income.
Elsewhere, JPMorgan maintained its number 1 spot for global investment banking rates, with 9% of the wallet’s share in 2019. Dimon said the company increased its investment banking wallet to the highest level by one decade, and ranked first for the 11th consecutive year.
During the quarter, the bank experienced a large rebound in trade, with total market revenues of $ 5 billion, 56% more than last year. Fixed income revenues recovered 86% to reach $ 3.4 billion, “benefiting from a favorable comparison compared to a weak previous year.” Stock market revenues increased 15% to $ 1.5 billion, driven by higher revenues in prime and cash shares.
The share, which is listed on the New York Stock Exchange, gained more than 41% in 2019, surpassing the 25.8% rebound of the S&P 500 (GSPC) index during the year.
Dimon reiterated the company’s commitment to invest and grow its business lines. Last year, JPMorgan added more than 70 new branches in 16 markets, while expanding its presence in commercial banking internationally.
Dimon also promoted that the company became “the first US bank to be approved for a majority-owned securities business in China.”
The CEO promoted “JPMorgan’s large investments in technology, which include artificial intelligence, cloud, digital and payments, as well as other investments in innovation, talent, security and risk control. These actions will help us continue to grow and serve our customers in the future, ”he said.
Wells Fargo (WFC) and Citigroup (C) will also report on Tuesday, followed by Bank of America (BAC) and Goldman Sachs (GS) on Wednesday and Morgan Stanley (MS) on Thursday.
Follow her on Twitter.“data-reactid =” 35 “>Julia La Roche is a correspondent in Yahoo Finance. Follow her on Twitter.
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