JPMorgan earnings falls but beats estimates

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JPMorgan Chase & Co reported a 14% fall in Q4 earnings but still beat analysts’ estimates.

JPMorgan was able to shrug off a slowdown in its trading arm helped by a stellar performance at its investment banking unit.

JPMorgan posted a 28% jump in investment banking revenue, while overall trading revenue fell 13%.

Reuters sees soaring inflation, a potential Omicron-induced economic slowdown and trading revenues returning to normal levels after an exceptional year challenging the banking industry’s growth in the coming months.

JPMorgan’s shares, up 6% this year, slipped 3% in trading before the bell on Friday.

During the quarter, JPMorgan maintained its position as the banking world’s second-biggest provider of worldwide Merger and Acquisition advisory after Goldman Sachs, according to Refinitiv.

Overall, the lender posted a profit of $10.4 billion, or $3.33 per share, in the quarter ended Dec. 31. Analysts had estimated a profit of $3.01 per share, according to Refinitiv data.

Revenue remained nearly flat at $30.3 billion. The bank’s earnings were also buoyed by reserve releases of $1.8 billion.