(Adds details about quarterly results)
By Sweta Singh
Jan 12 (Reuters) – JPMorgan Chase & Co, the biggest U.S. bank by assets, reported a higher-than-expected quarterly profit as gains in net interest income offset a slowdown in trading revenue.
The bank recorded a $2.4 billion charge to cover a new one-time repatriation tax on income it has kept abroad and to adjust the value of its deferred tax assets and liabilities.
The sweeping changes in the tax law enacted by President Donald Trump are expected to mean short-term pain but long-term gain for large U.S. banks that do business worldwide.
“The enactment of tax reform in the fourth quarter is a significant positive outcome for the country. U.S. companies will be more competitive globally, which will ultimately benefit all Americans,” Chief Executive Officer Jamie Dimon said in a statement.
Net profit, adjusted to exclude the tax charge and other one-time items, was $6.7 billion, or $1.76 per share, for the fourth quarter ended Dec. 31. (bit.ly/2AR7AUe)
Analysts had expected earnings of $1.69 per share on average, according to Thomson Reuters I/B/E/S.
Net revenue rose 4.6 percent to $25.45 billion, beating the estimate of $25.15 billion.
Net interest income rose 11 percent to $13.4 billion on higher interest rates and loan growth. Markets revenue, however, fell 22 percent to $4.43 billion.
Net income, reported under generally accepted accounting principles (GAAP) and including the tax charge, declined to $4.23 billion, or $1.07 per share, in the fourth quarter ended Dec. 31, from $6.73 billion, or $1.71 per share, a year earlier. (Reporting by Sweta Singh in Bengaluru and David Henry in New York; Editing by Saumyadeb Chakrabarty)
The Wider Image App
Explore the world through captivating visual stories by award-winning Reuters photojournalists. This immersive app for iPad reimagines news photography to bring images and information to life.
The Wider Image is a winner of 25 awards for innovation, photojournalism and design and an iTunes Editors Choice.
The Wider Image is also available as a responsive site at widerimage.reuters.com
- Discover What Matters: Uncover stories, people and places you never knew existed. New visual reports added daily to the wealth of work.
- Lean in and Learn: Get more context on every story – interact with image sequences, read expanded facts, swipe between the before and after, hear words and sounds.
- Meet the Storytellers: Get to know the photographers with behind the scenes images and insights. Follow your favorites to see new work as it is added.
- Show and Tell: Enjoy stunning photojournalism on your television for all to see via Apple TV. Share stories with confidence they look great on any device.
LONDON World stocks scaled fresh peaks on Friday while the euro hit a three-year high and Bund yields rose as progress on forming a German government gave fresh impetus to a bond market sell-off triggered by signs the ECB may accelerate an end to its stimulus.
The U.S. House of Representatives on Thursday passed a bill to renew the National Security Agency’s warrantless internet surveillance program, overcoming objections from privacy advocates and confusion prompted by morning tweets from President Donald Trump that initially questioned the spying tool. Full Article