JPMorgan reports record annual profits and warns of missed target as costs jump and deals slow.

JPMorgan Chase reported record profits for the full year 2021, spurred by thriving transaction activity.

The largest U.S. lender said net profit was $10.4 billion, or $3.33 per share.
That’s down from $12.1 billion, or $3.79 per share, in the same period last year, but still ahead of analysts’ average forecast of $9.36 billion, or $2.99 per share, according to consensus data compiled by Bloomberg.

Jamie Diamond, JPMorgan’s chief executive, expressed an optimistic tone for next year, saying the economy “continues to do pretty well despite the headwinds associated with Omicron’s variant and inflation.

The slight increase in loans is a constant source of frustration for U.S. banks, as government stimulus during the pandemic has reduced the need for companies and consumers to borrow money.

In the fourth quarter, average loans at JPMorgan rose 6% year-on-year to $1.1 trillion, while deposits with the bank rose 17 percent to $2.5 trillion.

The prospect of a Federal Reserve interest rate hike in 2022 has inspired optimism that banks can earn more from the loans they lend.

The bank also provided guidance that spending in 2022 would increase to approximately $77 billion, about $8.6 billion more than in 2021 due to higher compensation and investment.

In the fourth quarter, JPMorgan said it had released another $1.8 billion in credit reserves.

JPMorgan Chase & Co. slid as much as 6.4% after the company said compensation and other costs jumped in the fourth quarter ahead of an expected surge this year.

Expenses in the last three months of 2021 rose 11% from a year earlier, and the firm said to expect them to rise to about $77 billion this year excluding legal costs, which would be an 8.6% increase. The forecast, along with worse-than-expected trading results and muted loan growth, pushed the stock into its steepest decline since June 2020.

After the gap, drop continue, there are no buy the dips orders on the horizon. Next significant support levels at $ 152.50. If it is br, it is very likely to accelerate the downward movement.

 Dealer Anatoliy Pavlov


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