JPMorgan Profit Soars 42% After Bank Releases Reserves for Bad Loans – The Wall Street Journal

BUSINESS

JPMorgan Chase & Co. posted its highest-ever quarterly profit after releasing $2.9 billion in funds it had set aside to cover soured loans.

The bank’s profit jumped 42% to $12.14 billion, or $3.79 per share, far past the $2.62 per share forecast by analysts polled by FactSet. A year earlier, JPMorgan had reported a quarterly profit of $8.52 billion, or $2.57 a share.

The nation’s biggest bank reported revenue of $29.22 billion for the quarter, up 3% from a year earlier and topping analysts’ expectations for $28.67 billion.

For the full year, through an economic spiral and an uneven recovery, JPMorgan posted record revenue of $119.54 billion, up 4% from 2019. The growth was powered by the Wall Street operation, which churned out stocks and bonds for clients eager to raise capital and trade securities amid an unsettled economy and record-high markets.

Still, the coronavirus pandemic’s impact on businesses and consumers forced the bank to put aside billions of dollars for potential loan losses earlier in the year. Full-year profit fell 20% to $29.13 billion.

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