(JPMorgan) JPMorgan Chase reported a record $48.3 billion net profit in the financial year 2021 on the back of investment banking increase and lower loan losses.
In the fourth quarter of 2021, the net income was reported at $10.4 billion or $3.33 per share, down from $12.1 billion or $3.79 per share in the prior year. Fourth-quarter net income still surpassed estimates of $9.36 billion or $2.99 per share.
The fourth-quarter net income was earned from net revenue of $29.26 billion, down from net revenue of $29.335 billion in the prior year.
Average loans rose by 6% year over year in the fourth quarter at $1.1 trillion, as deposits increased by 17% to $2.5 trillion.
The bank warned that its expenses in 2022 could rise by $8.6 billion from 2021 levels to reach $77 billion due to investments and higher compensation.
JPMorgan’s trading division revenue fell by 11% to $5.3 billion in the fourth quarter, lower than the forecasted $5.36 billion. Investment banking revenue rose 28% to $3.2 billion, above the estimated $3.1 billion.
The bank released $1.8 billion in credit reserves in the fourth quarter, with adjusted net incomes edging lower to $9 billion.
The banking giant expects headwinds of the Omicron variant, supply chain bottlenecks, and inflation going forward amid improvements in the economy.
JPM: NYSE is down -4.77%.
