US banking giant JP Morgan Chase today reported a 59% increase in fourth-quarter profits as investment banking and retail strength compensated for lacklustre trading results.
The bank said it earned $2.7 billion, or 76 cents a share, in the quarter. The quarter's results were boosted by earnings from JP Morgan's merger in July with Bank One and from insurance reimbursement.
Excluding those items, earnings would have come to 73 cents a share. Wall Street analysts had forecast 72 cents on average.
JP Morgan chief executive Jamie Dimon called trading in the latest quarter 'disappointing'. But fees from investment banking fees were strong, while deposits and accounts in retail banking increased.
JP Morgan also 'achieved further expense efficiencies' from the Bank One merger, Dimon said. By the end of the fourth quarter, JP Morgan had saved $550m from the merger. The bank predicted annualised savings of $2.8 billion by the end of this year.
