JPMorgan Chase & Co., the largest US bank, reported record annual profits on Wednesday, beating Wall Street forecasts, amid a strong performance from its competitors. The bank’s net income soared 50% to $14 billion in the fourth quarter, exceeding expectations of $4.09 per share.
Major banks, including Citigroup, Wells Fargo, and Goldman Sachs, also issued strong results, with many beating profit forecasts. JPMorgan shares rose just less than 1%, while its competitor Goldman Sachs increased by 5.4%.
The US banking sector has benefited from higher interest rates over the past two years, which have helped drive consumer spending and business investment. The Federal Reserve’s decision to trim its benchmark interest rate in December also boosted bank earnings.
However, JPMorgan CEO Jamie Dimon expressed caution about geopolitical risks, citing concerns about global instability since World War II. He stated that banks must balance promoting growth with maintaining safety and soundness.
JPMorgan reported a record $54 billion profit for the year, or $18.22 per share, adjusted for one-time expenses. Other major banks also reported strong earnings, with Wells Fargo increasing net income by 49% to $5.1 billion in the fourth quarter. Goldman Sachs revenue rose to nearly $35 billion, driven by strong performances from equities and investment banking.
The US stock market climbed 1.7%, with the S&P 500, Dow Jones Industrials, and Nasdaq gaining significant gains following the release of bank earnings.
Source: https://apnews.com/article/jpmorgan-chase-bank-earnings-profit-38c5a832fdb4503d8483d6115b4a8ee1