Key Points
- JPMorgan’s fourth-quarter earnings and revenue beat Wall Street’s expectations.
- The strong results were driven by a surge in the bank’s trading operations.
- Equities trading revenue jumped 40%, while fixed income trading rose 7%.
- The bank’s profit declined 7% due to a one-time charge related to the Apple Card acquisition.
JPMorgan Chase kicked off the bank earnings season with a strong fourth-quarter report that beat Wall Street’s expectations. The bank’s trading desks had a strong quarter, helping offset a one-time charge related to its recent acquisition of the Apple Card portfolio.
The company reported adjusted earnings of $5.23 per share on revenue of $46.77 billion, both of which exceeded analysts’ expectations. The bank’s profit fell 7% to $13.03 billion, entirely due to a pre-announced $2.2 billion reserve it had to set aside for the Apple Card deal.
The real star of the show was the trading division. Equities trading revenue surged by a whopping 40% to $2.9 billion, and fixed income trading was also up a solid 7% to $5.4 billion. Both numbers were well above analysts’ expectations.
Banks have been in a “Goldilocks” environment lately. A rebound in trading and dealmaking, falling interest rates, and a stable consumer have all provided a lift to the sector. The big question now is whether this momentum can continue into 2026.
Analysts will be listening closely to what JPMorgan CEO Jamie Dimon has to say about the year’s outlook, especially amid a weakening labor market and President Trump’s recent call for a cap on credit card rates.
For now, though, JPMorgan’s strong results are a good sign for the rest of the banking industry. Bank of America, Citigroup, and Wells Fargo are all set to report their earnings later this week.
