JPMorgan stock rises despite profit hit from Apple card costs

New York: JPMorgan Chase shares edged higher on Tuesday after the bank reported quarterly earnings that were weighed down by costs linked to its Apple Card deal, even as underlying performance beat market expectations.

JPMorgan stock rose about 1 per cent following the results, as investors looked past a decline in reported profit and focused on strong revenue growth and higher-than-expected adjusted earnings.

The bank said fourth-quarter net income fell 7 per cent to $13 billion, or $4.63 per share, after factoring in $2.2 billion in credit losses related to its recently announced takeover of the Apple Card portfolio from Goldman Sachs. Excluding these costs, JPMorgan’s profit would have reached $14.7 billion, with adjusted earnings of $5.23 per share, comfortably above Wall Street’s forecast of $4.85.

Total revenue rose 7 per cent to $46.8 billion, supported by solid gains in both consumer banking and trading. Net interest income climbed 7 per cent to $25 billion, while revenues from equities and fixed income trading surged 15 per cent year-on-year, beating analyst expectations.

In comments accompanying the results, Chief Executive Officer Jamie Dimon said the US economy remains resilient, with consumers continuing to spend and businesses staying relatively healthy. However, he cautioned that markets may be underestimating key risks.

“Markets seem to underappreciate the potential hazards,” Dimon warned, citing geopolitical uncertainty, the risk of persistent inflation, and elevated asset prices.

The earnings report marks the unofficial start of the fourth-quarter earnings season for major US banks, with JPMorgan’s share price reaction reflecting investor confidence in the lender’s core strength despite near-term pressures on profit.