JPMorgan Chase’s profit fell in the fourth quarter as it took a one-time charge tied to its agreement with Goldman Sachs to take over a credit card partnership with Apple.
The deal would strengthen JPMorgan’s foothold in credit cards and add to a long list of strategic wins for CEO Jamie Dimon, who has turned the bank into a leading player across retail and investment banking. Profit fell to $13 billion, or $4.63 per share, in the three months ended December 31, the bank said on Tuesday. That compares with $14 billion, or $4.81 per share, a year earlier. Excluding the one-time charge, JPMorgan’s quarterly profit increased to $14.7 billion, or $5.23 per share, fueled by trading. Shares of the bank rose 1.5% before the bell.
“The U.S. economy has remained resilient,” Dimon said in a statement. “While labor markets have softened, conditions do not appear to be worsening. Meanwhile, consumers continue to spend, and businesses generally remain healthy.” Executives across the industry have pointed to resilient consumers, backed by a strong job market and rising pay, who have propped up borrower demand and kept loan payments steady. Markets swung sharply in the quarter as concerns about a bubble in AI stocks intensified after two years of broad gains. CEO warnings that equities were due for a correction added to investor caution.
Meanwhile, bond markets remained jittery as uncertainty persisted around when and how much the U.S. Federal Reserve would cut rates. Markets revenue at JPMorgan climbed 17% in the fourth quarter, with fixed income up 7% and equity surging 40%.
