Business

JPMorgan Chase & Co. Q4 2017 Earnings Beat Estimates

The JPMorgan Chase & Co. Q4 2017 earnings results were released before opening bell this morning. The bank reported adjusted earnings of $1.76 per share on $25.45 billion in revenue, compared to the consensus estimates of $1.69 per share and $25.17 billion in revenue. In the previous year’s fourth quarter, the bank reported $1.71 per share in earnings on $24.33 billion in revenue.

JPMorgan q4 2017 earnings
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JPMorgan Chase Q4 2017 earnings

On a net basis, JPMorgan ChaseQ4 2017 earnings came in at $1.07 per share. The bank’s net interest income rose 11% year over year to $13.4 billion, beating the consensus of $13.2 billion as rising interest rates and growth in loans and deposit drove the increase. A slight decline in markets net interest income partially offset the increase.

JPMorgan’s credit loss provision grew to $1.3 billion while analysts had been expecting $1.47 billion. Corporate and investment banking revenue fell from $8.46 billion in the year-ago quarter to $7.48 billion in the fourth quarter of 2017. Consensus was at $7.91 billion. Assets under management in the firm’s asset and wealth management division reached a new record of $2 trillion, a 15% increase.

Equity market revenue was flat year over year, while fixed income markets revenue plunged 34%. Markets and investor services revenue tumbled 22% to $4.4 billion, while consumer and business banking revenue grew 16% to $5.6 billion.

JPMorgan Chase takes charge for tax reform

The JPMorgan Chase Q4 2017 earnings results include a net impact of $2.4 billion from the tax reform bill, which slashed the bank’s earnings per share by 69 cents. Chairman and CEO Jamie Dimon said in a statement that he sees wide-reaching benefits from the tax reform bill.

“U.S. companies will be more competitive globally, which will ultimately benefit all Americans,” Dimon said in a statement with the JPMorgan Chase Q4 2017 earnings release. “The cumulative effect of retained and reinvested capital in the U.S. will help grow the economy, ultimately growing jobs and wages. We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments.”

Following the JPMorgan Chase Q4 2017 earnings release, the firm’s stock was little changed in premarket trades.