JPMorgan reported a significant increase in net income, soaring 50% to over $14 billion in the fourth quarter, surpassing Wall Street expectations. Earnings per share rose to $4.81 from $3.04 a year ago, exceeding projections of $4.09 per share. Total managed revenue reached $43.7 billion, up 10% from the previous year's $39.9 billion, surpassing the expected $41.9 billion.
For the year, JPMorgan posted a record profit of $54 billion, or $18.22 per share, adjusted for one-time expenses. Despite a 3% decrease in interest income to $23.5 billion due to lower interest rates, the bank's investment banking business saw a 49% increase in fees and a 21% rise in markets revenue.
The consumer banking segment also performed well, with nearly 2 million checking accounts opened. JPMorgan set aside $2.6 billion to cover bad loans, slightly lower than the previous year.
Wells Fargo also exceeded profit expectations with a nearly 50% increase in net income to $5.1 billion in the fourth quarter, or $1.43 per share. Revenue came in at $20.4 billion, slightly below expectations.
In September, Wells Fargo agreed to enhance its financial crimes risk management in collaboration with U.S. bank regulators. The bank had faced scrutiny following a series of scandals, including the opening of fake customer accounts.
JPMorgan's CEO highlighted the strength of the U.S. economy, citing low unemployment and robust consumer spending. He emphasized the importance of balanced regulation to promote growth while ensuring the stability of the banking system.
Despite optimism about the economy, concerns about geopolitics were raised, with JPMorgan preparing for various scenarios. The bank announced leadership changes, with the current president and COO set to retire by the end of 2026.
Citigroup and Goldman Sachs also saw stock gains after surpassing Wall Street profit forecasts, with Citigroup climbing 5.6% and Goldman Sachs gaining 3.6%.
