ZCZC
BCN-07
US-BANKING-EARNINGS-JPMORGAN
JPMorgan earnings surge despite some trading weakness
NEW YORK, Jan 15, 2019 (BSS/AFP) – 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.
BSS/AFP/SR/1830 HRS