JPMorgan beats estimates on strong trading, underwriting

JPMorgan beats estimates on strong trading, underwriting

JPMorgan Chase & Co , the largest U.S. bank, posted a 21per cent rise in quarterly profit on Tuesday, driven by strength in its trading business and higher underwriting fees.

JP Morgan Chase & Co. corporate headquarters in New York
FILE PHOTO: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files

REUTERS: JPMorgan Chase & Co posted a better-than-expected rise in quarterly profit on Tuesday, as strong results at its trading and underwriting businesses offset weakness in consumer banking.

Net income at the United States' largest bank rose to US$8.52 billion, or US$2.57 per share, in the quarter ended Dec. 31, from US$7.07 billion, or US$1.98 per share, a year earlier. Net revenue rose 9per cent to US$29.21 billion. (

Analysts on average had expected the bank to earn US$2.35 per share on revenue of US$27.94 billion, according to Refinitiv data.

JPMorgan's shares were up nearly 2per cent in pre-market trade.

Strength in bond trading boosted overall trading revenue, allaying concerns about the impact of the U.S.-China trade dispute and slowing global growth.

"While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year," JPMorgan Chief Executive Officer Jamie Dimon said in a statement.

Fixed income trading revenue surged 86per cent to US$3.4 billion compared with a year ago when choppy trading conditions hit bond markets. Revenue from equity markets rose 15per cent to US$1.5 billion.

The robust showing at the bank's trading desk offset a surprise weakness in consumer banking.

Consumer and business banking revenue fell 2per cent to US$6.4 billion, hurt mainly by lower deposit margins. Home lending revenue was down 5per cent to US$1.3 billion.

Total loans, excluding home lending, rose 3per cent in the quarter. Home loans were down 17per cent.

JPMorgan's results kick off the earnings season for U.S. banks and are widely seen as a barometer of the health of the economy. Wells Fargo & Co and Citigroup Inc are expected to report results later in the day.

(Reporting by Anirban Sen in Bangalore and Elizabeth Dilts Marshall and Sweta Singh in New York; Editing by Saumyadeb Chakrabarty)

Source: Reuters