JPMorgan profit rises 6% on trading strength

JPMORGAN reported a 6 per cent rise in fourth-quarter profit on Friday (Jan 13), as a better-than-expected performance from the bank’s traders more than offset a hit from a slump in dealmaking.

The bank said it had reserved US$1.4 billion in loan loss provisions.

JPMorgan’s profit for the three months ended Dec 31 was US$11 billion, or US$3.57 per share, compared with US$10.4 billion, or US$3.33 per share a year earlier.

The investment banking unit’s poor run continued in the quarter, with revenues down 57 per cent as corporate executives battened down the hatches to prepare for a potential recession, instead of spending on deals.

Trading revenue, however, gained from market volatility as investors repositioned bets to navigate a high interest rate environment.

While fixed income markets trading revenue was up 12 per cent, equity trading revenue was relatively flat, the bank said. REUTERS