JPMorgan Posts 9% Profit Growth in Q4 Amid Apple Card Costs

Post by : Bianca Suleiman

New York: JPMorgan Chase announced a 9% increase in its fourth-quarter profit on an adjusted basis, bolstered by a strong U.S. economy and solid performance in its consumer and investment banking sectors.

The top U.S. bank registered earnings of $13.03 billion, equivalent to $4.63 per share. These results included a one-time charge of 60 cents per share due to the recent acquisition of the Apple Card credit card portfolio from Goldman Sachs.

In connection with this acquisition, JPMorgan allocated $2.2 billion in loan-loss reserves to anticipate possible future losses associated with the Apple Card business. When excluding this reserve adjustment, the bank reported an adjusted profit of $5.23 per share, significantly exceeding analyst forecasts of $4.85 per share, as reported by FactSet.

The bank's revenue for the quarter grew by 7% year-on-year, reaching $45.8 billion, driven by sustained consumer spending and robust business activities.

CEO Jamie Dimon stated his confidence in the overall U.S. economic landscape, despite some signs of a weakening labor market. He remarked, “There’s no indication of deterioration; consumers are still spending, and businesses remain generally healthy. These patterns might persist with fiscal stimulus and regulatory easing alongside recent monetary policy adjustments.”

Despite these encouraging results, JPMorgan's stock fell nearly 3% in early trading, closing around $314.74, as investors considered broader political and regulatory challenges.

JPMorgan is one of the initial major U.S. banks to release its earnings for the season, with market focus shifting to Washington, where President Donald Trump reiterated support for legislation imposing a 10% cap on credit card interest rates.

Furthermore, Federal Reserve Chair Jerome Powell revealed that the Justice Department has issued subpoenas concerning his testimony related to the Fed’s building renovations, indicating heightened tension between the White House and the central bank.