JPMorgan Shares Fall 2% Despite Earnings Beat as Banking Fees Decline

Core Insights - JPMorgan Chase reported fourth-quarter earnings that exceeded expectations, driven by strong trading and markets performance, but shares fell over 2% intraday due to a decline in investment banking revenue [1] Financial Performance - The bank posted adjusted net income of $14.7 billion, or $5.23 per share, for the quarter ended in December, surpassing analyst estimates of $4.92 per share [2] - Including a $2.2 billion credit reserve related to the acquisition of the Apple credit card portfolio, net income declined 7% year over year to $13 billion, or $4.63 per share [2] - Revenue totaled $46.77 billion, exceeding Bloomberg consensus estimates of $46.35 billion [2] Market and Investment Banking Performance - Markets revenue increased by 17% year over year to $8.2 billion, with both fixed income and equities trading showing stronger-than-expected results [3] - Investment banking revenue fell by 2% to $2.6 billion, reflecting lower fees across all product categories [3] Future Projections - For fiscal 2026, JPMorgan projected net interest income of approximately $103 billion, above market expectations of $100.38 billion [4] - The CEO noted that the U.S. economy remains resilient due to solid consumer spending and healthy business activity, with conditions not materially deteriorating despite some labor market softening [4]