1.12.24 - JPMorgan posts record profits for 2023 despite drop in fourth quarter
' JPMorgan Chase posted a record annual profit — nearly $50 billion — despite taking a $3 billion hit in the fourth quarter to replenish a government deposit insurance fund, the Wall Street giant said Friday.
The nation’s largest lender hauled in $49.6 billion last year to post an impressive 31% improvement from its bottom line in 2022, blowing past economists’ expectations.
Shares of the bank climbed 2.3% before the opening bell.
CEO Jamie Dimon reiterated his view that the economy remained resilient but warned that inflation could be more persistent than expected and rates could be higher for longer.
“It is important to note that the economy is being fueled by large amounts of government deficit spending and past stimulus,” Dimon said.
The bank attributed its best-ever year to “loan growth” from high-interest rates and its acquisition of First Republic Bank, one of three midsize lenders to fail within a span of two months, per its earnings report.
Profit for the fourth quarter was $9.31 billion, or $3.04 per share, for the three months ended Dec. 31, the bank said on Friday. That compares with $11.01 billion, or $3.57 per share, a year earlier. '