JPMorgan Chase earnings drop on weak trading, tax items
New York (AFP)
JPMorgan Chase reported lower fourth-quarter earnings Friday on weak trading revenues and one-time costs from US tax reform, partly offset by gains from higher interest rates.
Net income for the quarter ending December 31 was $4.2 billion, down 37 percent from the year-ago period.
Revenues rose three percent to $24.2 billion.
Results were hit by one-time costs of $2.4 billion due mainly to taxes on earnings repatriated to the United States after Congress passed tax reform in December.
Bright spots included a jump in net interest income from higher interest rates charged to clients. JPMorgan also reported higher overall loans compared with the year-ago period.
On the downside, revenues in JPMorgan's markets and investor services dived 22 percent, with fixed income revenues 34 percent lower amid little volatility. The bank also set aside greater funds in case of bad loans.
Despite the short-term hit to results from the tax bill, chief executive Jamie Dimon hailed the measure as a boon for the US economy.
"US companies will be more competitive globally, which will ultimately benefit all Americans," Dimon said in a news release.
Shares of JPMorgan dipped 0.1 percent to 110.70 in pre-market trading.
© 2018 AFP