JPMorgan Chase kicks off reporting season with a bang
Wall Street banking giant JPMorgan has kicked off the reporting season with a bang by posting fourth quarter profits of $3.28 billion (£2 billion) compared with $702 million a year ago – at the height of the financial crisis.
Meanwhile, the bank reported full-year profits of $11.7 billion, or $2.26 per share, on record revenue of $108.6 billion.
Commenting on its figures, Jamie Dimon, JP Morgan’s chairman and chief executive, said: “Though these results showed improvement, we acknowledge that they fell short of both an adequate return on capital and the firm’s earnings potential.”
The bank paid a total of $26.9 billion in pay and bonuses over 2009, with investment bankers earning a total of $9.3 billion.
The strong results come just a day after US President Barack Obama pledged to repay taxpayers the losses they are owed from bailing out the banks as he criticised bankers for the “massive profits and obscene bonuses.”
The President said: “My commitment is to recover every single dime the American people are owed.”
The losses arose from a $700 billion taxpayer bailout of US banks called the Troubled Asset Relief Program (TARP).
The bank repaid $25 billion of TARP funds in June 2009 and is the first US bank to report its results. Goldman Sachs, Morgan Stanley, Citigroup and Bank of America are all due to report their results next week.
Unlike many other Wall Street banks, JPMorgan did not report a quarterly loss throughout the financial crisis.