JPMorgan Chase finished out its most profitable year ever with $9.3 billion in fourth-quarter income.
JPMorgan shares rose 0.4% on the news.
Here are the key numbers:
The biggest bank in the U.S. said profit fell 15% from a year earlier, to $3.04 per share in the quarter. Analysts had expected $3.35 per share, according to FactSet.
Revenue rose 12% to $38.57 billion, falling short of the $39.73 billion analysts expected.
For the full year, JPMorgan’s revenue rose 23% to $158.1 billion and profit rose 32% to $49.55 billion. Both were record results.
The bank has benefited from rising interest rates lifting its lending income, which has climbed faster than expected. In the fourth quarter, JPMorgan earned $24.05 billion in net interest income, the amount of revenue it makes on lending minus what it pays out on deposits.
Executives have said that lending revenue is abnormally inflated and would come down. But the net interest margin rose again to 2.81% from 2.72% in the third quarter.
In the consumer bank, fourth-quarter revenue rose 15%. Profit rose 5% to $4.79 billion. Both numbers were boosted by the acquisition of First Republic last year.
In the corporate and investment bank, revenue rose 3% while income dropped 24%.
Profits were dented by some one-time charges, including a special assessment by the Federal Deposit Insurance Corp., which charged big lenders to help refill its coffers from the bank failures in the spring. JPMorgan took a $2.9 billion charge for its allotted amount. It had previously said it expected to pay around $3 billion.
The bank also took a $743 million loss on selling underwater Treasurys and mortgage-backed securities.
Comments