JPMorgan Chase & Co. (JPM) , the largest U.S. bank, missed analysts' profit estimates for the first time in four years, as trading revenue fell short of expectations and costs rose for loan-loss reserves.
Net income rose 67% to $7.07 billion, benefiting from the 2017 tax cuts and rebounding from a big write-down taken a year earlier, the New York-based bank said Tuesday in a press release. Earnings per share were $1.98, below the average analyst estimate of $2.20 in a FactSet survey.
Net revenue rose 7% from a year earlier to $26.1 billion, JPMorgan said, less than estimated by analysts at the brokerage firm Keefe, Bruyette & Woods. Volatile markets in the fourth quarter took a toll on bond trading and commodities, partially offset by strength in emerging markets, the bank said.
Revenue in the bond-trading division fell 16% to $1.9 billion, a bigger drop than the 10% predicted by the KBW analysts.
Stock-trading revenue rose 15% to $1.3 billion.
The bank set aside $1.548 billion to cover bad loans, an 18% increase. The KBW analysts had projected just $1.36 billion of the loan-loss provisions.
The stock rose 0.7% to $101.68 at the close of trading on the New York Stock Exchange, after trading lower for most of the session.
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