(FILES)Pedestrians walk past the JP Morgan Chase headquarters in New York in this March 17, 2008 file photo. The US Treasury said December 11, 2009 it expected to get 936 million dollars from warrants in banking giant JPMorgan Chase, under a previously announced divestment. The Treasury announced the results of an auction to 88 million warrants -- which are a type of option allowing additional share purchases -- in JPMorgan Chase to end the government investment in the banking giant under last year's financial system rescue. AFP PHOTO/DON EMMERT
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.
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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. - Reuters
