The American-based financial service provider J.P. Morgan Chase and Co. have smashed analysts’ expectations garnering a total of $1.71 increase per share on revenue of $24.333. While the bank’s stock price also soars higher in the premarket trading.
J.P. Morgan’s net income has tremendously increased at $6.7 billion it is 24 percent higher than of last year’, while the net interest income was at $12.1 billion increasing a total of 5 percent because of loan growth and the net impact of higher rates, and through the lower investment securities balances. J.P. Morgan’s stock was also nearing a 52-week high just before December ended, the recent fiscal report was the first result after the Federal Reserve raised its key interest rate target in a year, and is expected to be raised again in the next 3 years.
CCB’s 2016 Result
The bank’s Consumer and Community Banking net income were at $2.4 billion and the new revenue was $11.0 billion, both were relatively down by 2 percent in contrast to the prior-year quarter. Consumer and Business Banking net revenue was up by 4 percent at $4.8 billion brought by the strong deposit growth and mortgage banking new revenue was at $1.7 billion, just an inch higher of last year’s. Card, Commerce Solutions, and Auto were down 8 percent at $4.6 billion due to the card new account originations cost and large loan balances and higher auto lease volumes.
CIB’s 2016 Result
On the other hand, Corporate and Investment Bank saw a better 2016 with an increase of $1.7 billion prior to last year’s at $3.4 billion, factors that greatly impacted the growth were; higher net revenue, lower noninterest expense, lower provision for credit losses and tax benefit related to the utilization of deferred tax assets. Banking revenue was also up by 1 percent at 2.8 billion, Investment banking was also up by 1 percent at $1.5 billion and was strongly backed up by higher debt underwriting fees and lower advisory and equity underwriting fees.
CEO Dimon Sees Better Year Ahead
J.P Morgan’s CEO Jamie Dimon said, “Our results this quarter were a strong end to another record year, reflecting our intense client focus and solid performance across our businesses. In the Consumer business, we had double-digit growth in deposits and core loan balances, our credit card sales volume was a record, and for the year we had over $1 trillion of merchant processing volume. We saw continued momentum from the third quarter in CIB with strong Markets results across products. Asset Management and Commercial Banking both grew loans and deposits nicely in a competitive environment.”
J.P. Morgan also rallied higher than of Wells Fargo who suffered from fraudulent customer account scandal last year and overtaking Bank of America’s trading revenue growth. CEO Dimon also sees a strong year under the Trump’s administration and said that the U.S. economy is continually gaining its footing and sees a better opportunity ahead.
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