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JPMorgan Chase Reports Profit Rose 21%

By David Benoit 

JPMorgan Chase & Co. said Tuesday that fourth-quarter profit jumped 21%.

The nation's largest bank reported a profit of $8.52 billion, or $2.57 a share. Analysts polled by FactSet had expected earnings of $2.35 a share. A year earlier, the bank reported a profit of $7.07 billion, or $1.98 per share.

Revenue rose 9% to $28.33 billion from $26.11 billion a year ago, topping analysts' expectations for $27.87 billion.

Banks are struggling with how to deal with continually low rates. The Federal Reserve cut its benchmark rate again in October, its third cut last year, and JPMorgan's lending margins fell. Lower rates tend to reduce what banks can charge for loans, though they can also fuel demand for loans and lower a bank's deposit costs.

JPMorgan shares soared throughout 2019 to all-time highs, up more than 40% for the year. Despite the increased cost, the bank continued buying back stock in 2019, helping lift its per-share earnings.

Shares rose about 1% to $138.70 in premarket trading Tuesday.

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Write to David Benoit at david.benoit@wsj.com

 

(END) Dow Jones Newswires

January 14, 2020 07:15 ET (12:15 GMT)

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