JPMorgan beats estimates on strong trading, underwriting


(Reuters) – JPMorgan Chase & Co (JPM.N) posted a better-than-expected rise in quarterly profit on Tuesday, as strong results at its trading and underwriting businesses offset weakness in consumer banking.

FILE PHOTO: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files

Net income at the United States’ largest bank rose to $8.52 billion, or $2.57 per share, in the quarter ended Dec. 31, from $7.07 billion, or $1.98 per share, a year earlier. Net revenue rose 9% to $29.21 billion. (bit.ly/36Okhjg)

Analysts on average had expected the bank to earn $2.35 per share on revenue of $27.94 billion, according to Refinitiv data.

JPMorgan’s shares were up nearly 2% in pre-market trade.

Strength in bond trading boosted overall trading revenue, allaying concerns about the impact of the U.S.-China trade dispute and slowing global growth.

“While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year,” JPMorgan Chief Executive Officer Jamie Dimon said in a statement.

Fixed income trading revenue surged 86% to $3.4 billion compared with a year ago when choppy trading conditions hit bond markets. Revenue from equity markets rose 15% to $1.5 billion.

The robust showing at the bank’s trading desk offset a surprise weakness in consumer banking.

Consumer and business banking revenue fell 2% to $6.4 billion, hurt mainly by lower deposit margins. Home lending revenue was down 5% to $1.3 billion.

Total loans, excluding home lending, rose 3% in the quarter. Home loans were down 17%.

JPMorgan’s results kick off the earnings season for U.S. banks and are widely seen as a barometer of the health of the economy. Wells Fargo & Co (WFC.N) and Citigroup Inc (C.N) are expected to report results later in the day.

Reporting by Anirban Sen in Bangalore and Elizabeth Dilts Marshall and Sweta Singh in New York; Editing by Saumyadeb Chakrabarty

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