JP Morgan said that its noninterest expense increased due to higher structural expense, and continued investments in the business, including technology and marketing, partially offset by reduced legal expenses
JP Morgan Chase reports Q4 2022 results. (Credit: Precious Madubuike on Unsplash)
JP Morgan Chase has reported a net income of $11bn or $3.57 per diluted share for the fourth quarter (Q4) 2022, a 6% rise compared to $10.4bn or $3.33 per diluted share for the same quarter in 2021.
The investment bank reported a net revenue of $34.5bn for the reported period, which increased by 18% compared to $29.2bn for the corresponding quarter previous year.
The company reported a non-interest expense of $19bn for the fourth quarter 2022, a 6% rise compared to $17.9bn for the same period in 2021.
The bank reported a return on common equity of 16% for the Q4 2022, which almost unchanged from the respective quarter in the previous year.
JP Morgan said that its noninterest expense increased due to higher structural expense, and continued investments in the business, which partially offset by reduced legal expenses.
JPMorgan Chase chairman and CEO Jamie Dimon: “Our lines of business performed well in the quarter, and we continued to see momentum in our areas of strategic focus. In Consumer & Community Banking, debit and credit card sales were up 9%, while card loans were up 19% with total revolving balances now back to pre-pandemic levels.
“In the Corporate & Investment Bank, Markets revenue rose 7% as client activity remained strong in Fixed Income. Global Investment Banking fees were down significantly in a challenging environment, although we maintained our #1 ranking in 2022.
“Commercial Banking loans were up 14% on new loan originations and higher revolver utilization. And in Asset & Wealth Management, revenue increased 3% as higher net interest income more than offset the impact of lower market levels.”
JPMorgan’s Consumer and Community Banking (CCB) business reported net revenue of $ 15.8bn for Q4 2022, a 28% rise compared to $12.3bn for the same quarter last year.
The company’s Corporate and Investment Bank (CIB) division reported net revenue of $10.5bn for Q4 2022, a 9% decline compared to $11.5bn for the respective quarter in 2021.
Its Commercial Banking (CB) unit reported net revenue of $3.4bn for Q4 2022, a 31% increase compared to $2.6bn for the corresponding quarter previous year.
The bank’s Asset and Wealth Management (AWM) business reported net revenue of $4.6bn for Q4 2022, a 2% increase compared to $4.5bn for the same period in 2021.