JP Morgan Chase posts "modestly disappointing" fourth quarter
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JP Morgan Chase has reported lower fourth-quarter profits after trading by its investment banking division weakened.
The bank’s latest financial results show net income amounted to $3.7 billion (£2.4 billion) during the fourth quarter of 2011. This is down from the $4.8 billion reported for the same period in 2010.
Fourth-quarter earnings per share came in at $0.90, compared with the $1.12 seen a year ago.
The quarter’s results were affected by a $567m pre-tax debit valuation adjustment (DVA) loss in the investment bank, which reflected at tightening of credit spreads.
Jamie Dimon, chairman and chief executive of JP Morgan Chase, says: “As we have consistently said, whether positive or negative, we do not consider DVA reflective of the underlying operations of the company.”
However, whole-year profit advanced from $17.37 billion in 2010 to $18.98 billion in 2011. Earnings per share were $4.48, up from $3.96.
Dimon comments: “We believe these returns were reasonable given the environment, although the return for the fourth quarter was modestly disappointing.”
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