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JPMorgan profit rises 24% as US election stimulates trading
[NEW YORK] JPMorgan Chase & Co, the No. 1 US bank by assets, reported a 23.8 per cent rise in quarterly profit on Friday, helped by a surge in investor activity related to the US presidential election.
The bank's net income rose to US$6.73 billion in the three months ended Dec 31 from US$5.43 billion a year earlier.
Earnings per share rose to US$1.71 from US$1.32. Analysts had expected earnings of US$1.44 per share, according to Thomson Reuters I/B/E/S. It was not immediately clear if the reported results were comparable. The earnings for both the latest and year-earlier periods included special items.
Bank of America Corp, the second-largest US bank, kicked off the quarterly earnings period for big US lenders earlier on Friday, announcing a 46.8 per cent rise in profit.
The stunning election of Donald Trump on Nov 8 set off a wave of trading in stocks and bonds during what is normally a slow period for trading desks at big banks.
JPMorgan and BofA were also reporting their first results since the Federal Reserve raised its key interest rate target for the second time since 2006 on Dec 14.
Higher interest rates are usually good for banks, allowing them to charge higher rates on loans.