JPMorgan Chase has posted a record fourth quarter earnings, coming in at $4.81 per share as revenues rose 10% to $43.7 billion.
Average loans and deposits both rose 2% from last year and investment banking fees jumped 49% year over year, while markets revenue increased 21%.
Net interest income was $23.5 billion, down 3%, yet it was impressive non-interest revenue for the quarter that pulled in $20.3 billion, up 29%.
The investment bank’s assets under management has now tipped over $4 trillion, up a whopping 18%.
Excluding markets, net interest income was $23 billion, down 2%, driven by lower rates and deposit margin compression across the lines of business, as well as lower deposit balances in CCB.
This was largely offset by the impact of balance sheet actions, primarily securities reinvestment, as well as higher revolving balances in Card Services and higher wholesale deposit balances.
Non-interest revenue excluding Markets was $13.7 billion, up 30%, largely driven by higher asset management fees in AWM and CCB, higher investment banking fees and lower net
investment securities losses compared to last year.
Markets revenue itself was $7 billion, up 21% and non-interest expense was $22.8 billion, down 7%.
Excluding the $2.9 billion FDIC special assessment in the prior year, non-interest expense was up 5%, predominantly driven by higher compensation, including growth in front office and technology employees, as well as higher brokerage expense and distribution fees.
The provision for credit losses was $2.6 billion, reflecting net charge-offs of $2.4 billion and a net reserve build of $267 million.
Net charge-offs of $2.4 billion were up $200 million, primarily driven by Card Services. The net reserve build included a $572 million net build in Consumer, predominantly in Card Services, and a $282 million net release in Wholesale.
The prior-year provision was $2.8 billion, reflecting net charge-offs of $2.2 billion and a net reserve build of $598 million.
JPMorgan Chase's earnings growth has slowed over the past five quarters leading up to the report, from a 50% gain to a 4% decline for Q3.
Edward Jones said that revenue was bolstered by strength in traditional lending income, as well as fees related to JPMorgan Chase's investment banking and credit card businesses, according to a note.
Analyst James Shanahan noted that securities trading-related revenue came in lower than expected, which partially offset results.
“Management guided 2025 net interest income of $94 billion, which marks a modest improvement from 2024 and was above current consensus forecasts,” Edward Jones wrote.