JPMorgan Chase (JPM 110.70, -0.14) is on track to begin near its flat line after reporting mixed quarterly results.
The banking giant reported above-consensus fourth quarter earnings of $1.76 per share on a 3.3% year-over-year increase in revenue to $24.15 billion, which was a bit shy of expectations.
Firmwide average core loans increased 6.0% year-over-year while core loans in Corporate Client Banking grew 8.0%. Corporate Client Banking average deposits grew 7.0% to $652 billion.
The bank reported a Tier 1 capital ratio of 12.1%, down from 12.2% one year ago and 12.5% in the previous quarter.
Adjusted overhead ratio increased to 58.0% from 55.0% in the previous quarter. One year ago, the adjusted overhead ratio stood at 56.0%. Adjusted expense increased to $14.60 billion from $13.80 billion one year ago.
Net interest income rose 11.0% year-over-year to $13.40 billion. Rising rates and loan/deposit growth contributed to the increase, which was partially offset by declines in Markets net interest income. Noninterest revenue fell 1.0% to $12.10 billion due to lower Markets revenue.
In the Consumer & Community Banking segment, Consumer & Business Banking revenue increased 16.0% to $5.56 billion due to higher deposit margins and strong deposit growth. Mortgage Banking revenue fell 15.0% to $1.44 billion due to lower net servicing revenue and loan spread compression. Card, Commerce Solutions & Auto revenue rose 11.0% to $5.07 billion. The company reported higher auto lease volumes and net interest income on higher Card loan balances and margins and lower Card new account origination costs net of annual fees.
Provision for credit losses increased by $282 million to $1.20 billion. The build included $200 million in Card reserves.
In the Corporate & Investment Bank segment, net revenue declined 12.0% to $7.48 billion due to a 22.0% decline in Markets & Investor Services revenue (to $4.43 billion). Banking revenue grew 10.0% to $3.05 billion and noninterest expense rose 8.0% to $4.51 billion.