JPMorgan earns biggest-ever annual profit as investment bankers ride rebound

(Reuters) -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 U.S. 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 U.S. 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 pro-growth 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.

NII GROWTH

The bank also forecast net interest income, or the difference between what it earns on loans and pays out on deposits, of $94 billion for 2025.

That was higher than analysts' forecast of nearly $91 billion, according to estimates compiled by LSEG.



Profit for 2024 rose to $58.5 billion from $49.6 billion a year earlier.

Fourth-quarter earnings were $14 billion, or $4.81 per share, for the three months ended Dec. 31, the largest U.S. bank said on Wednesday. That compares with $9.3 billion, or $3.04 per share, a year earlier.

Source: Investing.com