JPMorgan profit declines amid Apple card deal charge
JPMorgan Chase reported a decline in fourth-quarter profits, following a one-time charge related to its agreement with Goldman Sachs to take over a credit card partnership with Apple.
Profit fell to $13 billion, or $4.63 per share, in the three months ended December 31, the bank said on Tuesday. That compares with $14 billion, or $4.81 per share, a year earlier, News.Az reports, citing Reuters.
Excluding the one-time charge, JPMorgan's quarterly profit increased to $14.7 billion, or $5.23 per share, fueled by trading. Shares of the bank rose 1.5% before the bell.
Executives across the industry have pointed to resilient consumers, backed by a strong job market and rising pay, who have propped up borrower demand and kept loan payments steady.
Markets swung sharply in the quarter as concerns about a bubble in AI stocks intensified after two years of broad gains. CEO warnings that equities were due for a correction added to investor caution.
Executives across the industry have pointed to resilient consumers, backed by a strong job market and rising pay, who have propped up borrower demand and kept loan payments steady.
Markets swung sharply in the quarter as concerns about a bubble in AI stocks intensified after two years of broad gains. CEO warnings that equities were due for a correction added to investor caution.
Earlier this month, JPMorgan and Apple struck a deal under which the bank became the new issuer of the iPhone maker's card.
The bank had said it expects to record a $2.2 billion provision for credit losses in the fourth quarter tied to the portfolio.
The deal comes at a critical juncture for the credit card industry, which could face a sharp shift if a proposal by U.S. President Donald Trump to cap interest rates at 10% moves forward. While Trump has said he expects companies to comply by January 20, Wall Street analysts remain doubtful the measure can be implemented without congressional approval.
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