JPMorgan Chase (JPM 99.79, -1.15, -1.14%) was on track to begin
lower by 2.7% after missing quarterly expectations.
The banking giant reported below-consensus fourth quarter earnings of $1.98 per share on revenue, which increased 8.1% year/year to $26.1 bln but was also shy of expectations.
Similar to Citigroup (C 60.12, +1.19, +2.02%), JPMorgan Chase saw a decline in Fixed Income trading revenue, which fell 16% to $1.9 bln. Overall Markets & Investor Services revenue fell 11% year/year to $3.96 bln.
Firmwide average core loans grew 6% year/year while core loans in Corporate Client Banking increased 5%. Corporate Client Banking average deposits increased 3%.
The bank reported a Tier 1 capital ratio of 12.0%, down from 12.1% one year ago and unchanged from the previous quarter.
Overhead ratio improved to 60% from 57% in the previous quarter. One year ago, the overhead ratio stood at 60%.
Net interest income grew 9% to $14.5 bln due to higher rates and loan growth. Noninterest revenue decreased 1% to $12.3 bln.
In the Consumer & Community Banking segment, Consumer & Business Banking revenue grew 18.2% to $6.57 bln due to higher net interest income and balance growth. Mortgage banking revenue decreased 8.3% to $1.32 bln due to lower net production revenue and lower volumes. Card, Merchant Services & Auto revenue grew 14.5% to reach $5.81 bln. Higher Card net interest income, higher auto lease volumes, and lower Card net acquisition costs drove the increase.
Provision for credit losses grew 9.5% year/year to $1.35 bln.
In the Corporate & Investment Bank segment, net revenue decreased 3.7% to $7.24 bln due to a 10.6% decline in Markets & Investor Services revenue (to $3.96 bln). Banking revenue grew 6.2% to $3.28 bln and noninterest expense rose 2.8% to $4.68 bln.
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