JPMorgan and Citigroup have delivered strong fourth quarter results, with trading revenue soaring in the final three months of the year for both major banks.
JPMorgan Chase & Co posted its biggest ever annual profit, with its bond trading business bouncing back in the fourth quarter of the year and revenue in the final three months of 2019 rising in all but one of JPMorgan’s four main businesses.
Full-year net income rose 12 per cent to $US36.4 billion ($53 billion) or $US10.72 a share from $US32.5 billion, or $US9.00 a share, in 2018, the firm said.
Citigroup beat analyst forecasts, with its credit card business delivering strong growth for the bank.
Trading revenue rose nearly 31 per cent as markets steadied during the last three months of 2019, with the gains driven by a 49 per cent surge in fixed-income trading. Equities trading fell 23 per cent due to weak performance in derivatives.
Wells Fargo didn’t fare as well however, with its final quarter profit slumping 55 per cent as the bank deals with the fall out of its sales scandal.
The bank racked up operational losses of $US1.9 billion ($2.75 billion) in the final quarter of the year as it set aside more cash to deal with pending litigation related to its fake-account scandal that erupted more than three years ago.