JPMorgan Chase reports record $36.4B profit for 2019

'U.S. consumer continues to be in a strong position'

JPMorgan Chase reported record full-year profit of $36.4 billion for 2019, sending shares higher.

The  New York-based bank's earnings surged 12 percent from a year earlier as consumer loans and credit card spending increased in the community banking division, the company's largest, and bond-trading revenue surged. In the last three months of the year, JPMorgan earned $2.57 a share as revenue rose 8.4 percent year-over-year to $28.3 billion, topping the $2.32 profit that analysts surveyed by Refinitiv were expecting.


“Resolution of some trade issues helped support client and market activity towards the end of the year," CEO Jamie Dimon said in a statement. "The U.S. consumer continues to be in a strong position, and we see the benefits of this across our consumer businesses.”

Late last year, the House of Representatives passed President Trump's revision of the North American Free Trade Agreement, and the U.S. and China reached an initial trade agreement, curbing some U.S. tariffs and buoying markets. Nationwide, the unemployment rate remained at 3.5 percent, a 50-year low.

"The robust holiday season was reflected in our card sales volumes and loan balances, up 10 percent and 8 percent, respectively,” Dimon said.

Net revenue from credit card services and auto loans jumped 9 percent to $6.3 billion, boosted by interest rates and more car leases. Meanwhile, consumer and business banking revenue slipped 2 percent year-over-year to $6.4 billion as the gap between interest rates charged to borrowers and paid to depositors -- a key revenue stream for lenders -- narrowed.

Lower net interest income dragged home lending revenue down 5 percent to $1.3 billion.

In the investment banking business, revenue from the markets and securities division soared 55 percent year-over-year to $6.1 billion. The unit was boosted by an 86 percent increase in bond-trading revenue and 15 percent growth in stock-trading.

Net interest income was $14.3 billion companywide, down 2 percent from the previous year.

JPMorgan shares gained 42.8 percent in 2019. They were down 1.6 percent this year through Monday.