JPMorgan increased its profits by a quarter in the fourth quarter thanks to revenue from trading bonds
JPMorgan Chase & Co., the largest U.S. Bank, increased its profit in the fourth quarter of 2016 24% due to more significant increase of income from operations with debt securities than the market expected.
As reported in a press-Bank release, its net profit in October-December amounted to $6,73 billion, or $1.71 per share, compared with $5,43 billion, or to $1.32 per share, for the same period a year earlier.
JPMorgan’s revenue this past quarter increased by 2%, from $23,747 billion to $24,333 billion.
Analysts polled by FactSet Agency, the average predicted profit at the level of $1.42 per share on revenue of $23,91 billion Results for the fourth quarter include a tax benefit of $475 million.
By the end of 2016, the Bank earned a record net income of $24.7 billion versus $24,44 billion a year earlier.
Expenses not related to interest payments, in the IV quarter decreased by 3%, to $13.8 billion with an expected market of $14 billion.
Corporate and investment Bank (CIB) has retained 1st place in terms of commissions in this area, its share of the global market in 2016 amounted to 8.1%. Revenue in October-December increased in comparison with the same period last year by 20%, to $8,46 billion Profit units has almost doubled (+96%) to $3,43 billion
Revenue from trading fixed-income assets jumped by 31% to $3.37 billion (consensus $3.26 billion), while revenue from stock trading increased by 8.1%, to $1.15 billion (consensus $1.29 billion).
Revenues of the retail division (CCB) declined 2% yoy to $11 billion, and net profit also declined 2%, to $2.4 billion Revenues of the mortgage business increased 10% to $1.69 billion
“Apparently, the U.S. economy increases the growth rate. For the future there is the possibility of making good, rational, informed decisions that spur economic growth, create jobs for Americans all income levels, and we are well prepared to make their contribution,” – are reported words of the CEO of JPMorgan James diamond.
Contributions to reserves for possible losses on loans decreased to $864 million from $1.3 billion, credit card Sales jumped by 14%, the number of active clients of mobile apps has increased by 16% to 26.5 million.
The return on equity amounted to in the last quarter of 11% versus the expected 9%.
Investment Bank JPMorgan Chase was founded in 1799, is one of the world leaders in the provision of investment banking services and asset management. Currently the Bank has operations in more than 60 countries, where it has more than 5.6 thousand units.
Friday at a pre-auction in new York, the Bank’s shares almost unchanged in price.
With the beginning of the year capitalization of the Bank decreased by 0.1%, to $308,6 billion ($86,24 per share), January 3, JPMorgan has set a new record value of shares – $87,23. During the time after the US elections (November 9, 2016) the stock price of JPMorgan jumped by 23%, which roughly corresponds to the dynamics of the sectoral banking index KBW Nasdaq.