JPMorgan released fourth-quarter earnings, posting a 42% rise in net income of $12.14 billion versus $8.13 billion estimated by analysts. Revenue was posted at $30.2 billion versus $28.7 billion revenue estimated. The earnings per share rose $3.79 versus estimated $2.65, according to an earnings release.
JPMorgan’s corporate and investment-banking division delivered a 17% increase in net revenue as well as an 82% rise in net income to $5.3 billion.
Additionally, the bank’s commercial-banking business delivered a 115% increase in net income to $2 billion, due in large part to $1.2 billion in reserve releases.
Net revenues jumped 10% in the asset-and-wealth management division however, higher expenses and a negligible benefit from reserve releases meant net income slid 2%.
The bank’s consumer-and-community banking division posted an 8% drop in net revenue to $12.7 billion, reflecting lower margins on deposits.
“JPMorgan Chase reported strong results in the fourth quarter of 2020, concluding a challenging year where we generated record revenue, benefiting from our diversified business model and dedicated employees,” Jamie Dimon CEO, JPMorgan Chase said in the earnings release. “While positive vaccine and stimulus developments contributed to these reserve releases this quarter, our credit reserves of over $30 billion continue to reflect significant near-term economic uncertainty and will allow us to withstand an economic environment far worse than the current base forecasts by most economists.”