NEW YORK (AP) — JPMorgan Chase & Co. said its fourth quarter profit rose 24 percent from a year earlier, helped by higher interest rates and strong results from its trading operations.
The nation’s largest bank by assets said it earned $6.73 billion, or $1.71 per share, compared with a profit of $5.43 billion, or $1.32 per share, in the same period a year ago. The results beat analysts’ forecast of $1.42 per share. The results included a tax benefit of $475 million.
“Our results this quarter were a strong end to another record year,” JPMorgan Chairman and CEO Jamie Dimon said in a prepared statement.
JPMorgan’s investment bank division had a stellar quarter, reporting net income of $3.43 billion compared with $1.75 billion in the same period a year earlier. The bank’s fixed income, currencies and commodities trading division reported a 31 percent jump in revenue, while stock trading had an 8 percent jump in revenue from the previous year.
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Like most of Wall Street, JPMorgan benefited heavily from the stock market’s big rally that came after the U.S. presidential election.
JPMorgan’s consumer banking division, its largest business by revenue, had a sluggish quarter, reporting net income of $2.36 billion compared with $2.41 billion in the same period a year earlier. Most of the decline was tied into a drop in revenue from credit cards and auto loans.
JPMorgan launched the Chase Sapphire Reserve Card last year, which became popular overnight. However, there were significant costs associated with the program.
Overall revenue was $26.09 billion in the period. JPMorgan’s adjusted revenue was $23.38 billion, which also beat Street forecasts. Five analysts surveyed by Zacks expected $23.24 billion.
JPMorgan shares have decreased slightly since the beginning of the year, while the Standard & Poor’s 500 index has risen slightly more than 1 percent. The stock has increased 46 percent in the last 12 months.
This story was partially generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on JPM at https://www.zacks.com/ap/JPM