Investing.com – JPMorgan Chase (NYSE:) has reported a 10% jump in net revenue in the fourth quarter, topping estimates, as the Wall Street banking giant was boosted by a surge in investment banking fees and trading activity.
Lenders are tipped to have been bolstered by a rally in stocks following President-elect Donald Trump’s election victory, with Wall Street anticipating a new era of looser regulations and lower taxes. A dip in corporate borrowing costs was projected to boost top-line results as well.
Markets revenue over the quarter increased by 21% to $7 billion, while revenue from fixed income markets jumped by 20% to $5 billion. Top-line returns from equity markets trading also grew by 22% to $2 billion, reflecting higher client activity, JPMorgan said.
Total adjusted revenue came in at $43.74 billion, above average analyst estimates of $42.01 billion, according to Bloomberg consensus forecasts.
In a statement, CEO Jamie Dimon said the overall business environment has been fortified by a “resilient” US economy highlighted by relatively 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.
But he flagged “significant risks” from potential upward impact on inflation and geopolitical conditions that described as “the most dangerous and complicated since World War II.”
Still, JPMorgan guided for net interest income this year of around $94 billion, above expectations of $91.31 billion, noting that balance sheet growth is anticipated to partially offset lower interest rates.
Meanwhile, earnings for the three months ended on December 31 were $14 billion, or $4.81 a share, up from $9.3 billion, or $3.04 per share, in the year-ago period.
Annual profit climbed to $58.5 billion, or $19.75 per share — a record for the biggest US bank.
Shares in the firm were higher in premarket US trading on Wednesday.
