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JPMorgan’s annual profit surges to record even as quarterly net income dips
- The lender benefited from its acquisition of failed First Republic Bank in May, which brought in billions of dollars of loans
- CEO Jamie Dimon reiterated his view that the US economy was steady, but warned that inflation could be more persistent than expected
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JPMorgan Chase reported its best-ever annual profit and forecast higher-than-expected interest income for 2024, even as its quarterly profit fell.
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The largest US lender also took a nearly US$3 billion charge to replenish a government deposit insurance fund.
JPMorgan benefited from its acquisition of failed First Republic Bank in May, which brought in billions of dollars of loans and bolstered its net interest income (NII) – the difference between what banks make on loans and pay out on deposits.
The bank expects full-year NII of US$90 billion. That was higher than estimates of US$86.2 billion, according to LSEG data. In the quarter, NII rose 19 per cent to a record of US$24.2 billion.
Shares hit record-high after markets open but corrected during trading hours and were flat.
CEO Jamie Dimon reiterated his view that the US economy was steady, but warned that inflation could be more persistent than expected and rates higher for longer.
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