JP Morgan &Chase 4th quarter profit has risen up to 24 percent as the biggest bank in America. This has caused bad loans and bond trading to increase. Earnings had benefited from better credit quality from American corporations and companies. The bank managed to pull roughly about 400 million of bad loan reserves in the mortgage energy and metal businesses. Fixed income trading had something to do with the increase, as well. Some say the election may have been responsible for the increase, according to Jamie Dimon, Chief Exec. Officer.
The trading revenue advanced 31 percent to $3.37 billion, in which topped the 3.26 billion estimate. At the corporate investment bank, the earnings had doubled, by 32 percent in income. However, certain expenses went down 6 percent. Investment-banking revenue had risen 1 percent to $1.5 billion.
Profit consumer banking had dropped 2 percent ($2.36 billion). The revenue was $11 billion and it was down 2 percent from a year earlier. Credit losses had declined also from $1.04 billion to $949 million a year earlier.
Card revenue had risen to 36 percent ($918 million). Dimon said the Sapphire Reserve credit card will reduce profits by $200 million to $300 million, in the 4th quarter. Due to this increase, the bank had become overwhelmed with interest for the product. The sign-up bonus is now 1500 in travel which is booked through Chase’s website. Net income made an increase to $586 million. Commercial banking also made an increase to $687 million.
As for the other banks, Bank of America Corp. was the second biggest bank to make a huge profit by the 4th quarter. Their revenue increased by 43 percent. Wells Fargo & Co. dropped by 5.4 percent and its revenue from its mortgage business had diminished. Morgan Stanley, Citigroup Inc. and Goldman Sachs Group Inc.however still haven’t revealed their numbers
