JPMorgan Chase profits rise 9% in the fourth quarter excluding hit from the Apple Card acquisition

JPMorgan Chase reported that its underlying fourth-quarter profit rose about 9% once a large, one-time hit tied to taking over the Apple Card portfolio from Goldman Sachs is excluded.​

Key earnings numbers

• Reported net income was about $13.0 billion, or $4.63 per share, for the quarter, down from roughly $14 billion a year earlier because of the Apple Card-related charge.​

• The bank booked around $2.2 billion in loan-loss reserves connected to the Apple Card acquisition, which reduced reported earnings by about $0.60 per share.​

• Excluding that reserve build, adjusted earnings were roughly $5.23 per share, about a 9%increase from the prior year and above analyst expectations of around $4.85–$5.00 per share.​

Revenue and business drivers

• Quarterly revenue was about $45.8–46.8 billion, approximately 7% higher than a year earlier, helped by growth in both consumer banking and markets/trading.​

• Consumer and community banking saw higher card spending, deposits and wealth fees, while markets revenue rose sharply, offsetting softer investment banking fees.​

Apple Card acquisition impact

• JPMorgan agreed to take over the Apple Card credit card business from Goldman Sachs, with over $20 billion of card loans expected to transfer and integration taking roughly two years.​

• To prepare for potential losses on this portfolio, the bank built the $2.2 billion credit-loss reserve in Q4, creating the one-time hit that makes reported profit look weaker than the underlying 9% growth.​

Management view and macro backdrop

• CEO Jamie Dimon said the U.S. economy remains resilient, noting that while labor markets have softened, consumers are still spending and most businesses remain in solid shape.​

• Dimon also highlighted that ongoing fiscal stimulus, deregulation and recent Federal Reserve policy are helping support credit demand and the bank’s performance.​