Updated at 7:12 a.m. ET
JPMorgan Chase & Co. reported stronger-than-expected fourth-quarter earnings on Wednesday as deals helped boost the group’s bottom line and offset an overall decline in net interest income tied to the Federal Reserve’s interest rate cuts.
JPMorgan Chase (JPMorgan Chase) The company said profit in the three months ended December was $14.005 billion, or $4.81 per share, up 58.2% from the same period last year and well above Wall Street’s consensus forecast of $4.11 per share.
JPMorgan Chase said group revenue grew 22.2% from last year to $42.8 billion, once again higher than analysts’ expectations of $41.73 billion, while expenses were $22.76 billion.
Net interest income was $23.5 billion, down 2.9% from a year earlier, while the bank also built $2.63 billion in reserves to cover bad loans and credit losses.
Investment banking revenue rose 46% to $2.6 billion, in part because global deal activity performed well in the fourth quarter, capping an otherwise muted period of M&A activity.
London Stock Exchange Group said that while the total value of M&A transactions rose 10% last year to $3.2 trillion, the total number of transactions fell to its lowest level in nearly a decade.
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“The U.S. economy has been resilient,” said JPMorgan CEO Jamie Dimon. “Businesses are more optimistic about the economy and are encouraged by expectations of a more pro-growth agenda and improved cooperation between government and business.”
“Two significant risks remain,” he added. “Current and future spending needs may lead to inflation, so inflation is likely to persist for some time. In addition, geopolitical conditions remain the most dangerous and complex since World War II.”
After the earnings report was released, JPMorgan Chase’s stock price rose 1.4% in pre-market trading, opening at $250.90 per share.
LSEG data shows that financial sector profits will grow 22.7% year-on-year, accounting for about 17.5% of the S&P 500’s overall forecast profit of $519.9 billion in the fourth quarter.
Related: Analysts reset bank stock forecasts ahead of earnings
Earlier this week, Dimon’s close associate Daniel Pinto, considered by many to be a possible replacement for the longtime CEO, unexpectedly announced his retirement as chief executive after more than three decades at the bank. Operations Officer.
Another JPMorgan veteran, Jennifer Piepszak, was named as his successor but is not expected to lobby for the position when Dimon is scheduled to step down in 2029.
Related: Veteran money manager issues dire warning for S&P 500 in 2025
