JPMorgan Chase (JPM), the largest U.S. bank by market capitalization, has reported better-than-expected quarterly results due to a strong performance by its trading unit.
JPMorgan's profit for the fourth quarter ended December 31, 2022 was $11 billion U.S., or $3.57 U.S. per share, compared with $10.4 billion U.S., or $3.33 U.S. per share a year earlier.
The lender said that it has set aside $1.4 billion U.S. in anticipation of a mild recession this year. In its earnings release the bank flagged a modest deterioration in its macroeconomic outlook, “reflecting a mild recession in the central case.”
JPMorgan's investment banking unit continued to post declines in the fourth quarter, with revenue down 57% year-over-year in the October through December period as spending on deals remains weak.
However, trading revenue gained from market volatility as investors repositioned their portfolios to navigate the current high interest rate environment. Revenue from fixed income trading rose 12% in Q4, said the bank.
JPMorgan’s share price fell 3% in premarket trading following its latest earnings print. Over the last 12 months, the stock has declined 17% to trade at $139.49 U.S. per share.
