JPMorgan hits record profit as rebound boosts investment bankers
The bank was buoyed by a strong economy and interest rate cuts that boosted stock sales and bond offerings
15 January 2025 - 15:08
byNiket Nishant and Nupur Anand
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Bengaluru/New York — JPMorgan Chase on Wednesday posted record annual profit as its dealmakers and traders reaped a windfall from rebounding markets in the fourth quarter, sending shares of the biggest US bank up nearly 3% in premarket trading.
The bank was buoyed by a strong economy and interest rate cuts that boosted stock sales and bond offerings. The bullish environment also prompted more mergers and acquisitions after years of tepid activity.
“The US economy has been resilient,” CEO Jamie Dimon said, citing low unemployment and healthy consumer spending.
“Businesses are more optimistic about the economy, and they are encouraged by expectations for a more progrowth agenda and improved collaboration between government and business,” Dimon said. Still, he cited risks: government spending, inflation, and geopolitical conditions.
The bank’s Wall Street operations were lifted by a 49% jump in investment banking fees and 21% higher trading revenue in the fourth quarter, surpassing executives’ forecast in December.
Stronger trading in credit, currencies and emerging markets helped the fixed-income unit, while resurgent activity in derivatives trading and cash market helped its equities business.
The bank also forecast net interest income, or the difference between what it earns on loans and pays out on deposits, of $94bn for 2025.
That was higher than analysts’ forecast of nearly $91bn, according to estimates compiled by LSEG.
Profit for 2024 rose to $58.5bn from $49.6bn a year earlier.
Fourth-quarter earnings were $14bn, or $4.81 per share, for the three months ended December 31, the largest US bank said on Wednesday. That compares with $9.3bn, or $3.04 per share, a year earlier.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
JPMorgan hits record profit as rebound boosts investment bankers
The bank was buoyed by a strong economy and interest rate cuts that boosted stock sales and bond offerings
Bengaluru/New York — JPMorgan Chase on Wednesday posted record annual profit as its dealmakers and traders reaped a windfall from rebounding markets in the fourth quarter, sending shares of the biggest US bank up nearly 3% in premarket trading.
The bank was buoyed by a strong economy and interest rate cuts that boosted stock sales and bond offerings. The bullish environment also prompted more mergers and acquisitions after years of tepid activity.
“The US economy has been resilient,” CEO Jamie Dimon said, citing low unemployment and healthy consumer spending.
“Businesses are more optimistic about the economy, and they are encouraged by expectations for a more progrowth agenda and improved collaboration between government and business,” Dimon said. Still, he cited risks: government spending, inflation, and geopolitical conditions.
The bank’s Wall Street operations were lifted by a 49% jump in investment banking fees and 21% higher trading revenue in the fourth quarter, surpassing executives’ forecast in December.
Stronger trading in credit, currencies and emerging markets helped the fixed-income unit, while resurgent activity in derivatives trading and cash market helped its equities business.
The bank also forecast net interest income, or the difference between what it earns on loans and pays out on deposits, of $94bn for 2025.
That was higher than analysts’ forecast of nearly $91bn, according to estimates compiled by LSEG.
Profit for 2024 rose to $58.5bn from $49.6bn a year earlier.
Fourth-quarter earnings were $14bn, or $4.81 per share, for the three months ended December 31, the largest US bank said on Wednesday. That compares with $9.3bn, or $3.04 per share, a year earlier.
Reuters
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