The financial services company has attributed the decline in net income to higher noninterest expense, and revenues to lower revenue in corporate and investment bank (CIB) markets and home lending
JP Morgan Chase has reported a net income of $10.4bn or $3.33 per diluted share for the fourth quarter (Q4) 2021, a 14% decline compared to $12.1bn or $3.79 per diluted share recorded in the corresponding quarter in 2020.
The investment bank reported a net revenue of $ 29.2bn for Q4 2021, a 1% decrease compared to $29.3bn for the same quarter last year.
According to JP Morgan Chase, decline in net income was driven by higher noninterest expense, and decline in revenue was by lower revenue in CIB Markets and Home Lending.
The company reported a return on common equity of 16% for the Q4 2021, compared to 19% for the same period last year.
JPMorgan Chase chairman and CEO Jamie Dimon said: “JPMorgan Chase reported solid results across our businesses benefiting from elevated capital markets activity and a pick-up in lending activity as firmwide average loans were up 6%.
“The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks.
“Credit continues to be healthy with exceptionally low net charge-offs, and we remain optimistic on U.S. economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth.”
JPMorgan Chase consumer and community banking (CCB) unit reported a net income of $4.2bn for the Q4 2021, a decrease by 2% compared to $4.3bn for same quarter in 2020.
Its corporate and investment bank (CIB) business reported a net income of $4.8bn for the Q4 2021, a 9% decline compared to $5.3bn for the corresponding quarter prior-year.
The company’s commercial banking (CB) unit reported a net income $1.2bn for Q4 2021, a decrease by 38% compared to $2.bn for the same quarter in last year.
Its asset and wealth management (AWM) business reported a net income of $1.1bn for the Q4 2021, a 46% decline compared to $786m for the Q4 2020.