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JPMorgan Chase’s profits fell 7 per cent in the final quarter of 2025 after an unexpected drop in investment banking revenues and an increase in the reserves set aside for possible loan losses.
The largest US bank by assets reported net income of $13bn for the quarter on Tuesday, just ahead of analysts’ estimates for $12.8bn but down from $14bn a year ago.
Investment banking fees fell 5 per cent to $2.3bn in the period, falling short of analysts’ estimates for a modest rise to about $2.6bn.
JPMorgan’s debt underwriting business, in particular, underperformed, with revenues falling 2.5 per cent compared with forecasts of an almost 20 per cent increase.
Investors have been anticipating that Wall Street is at the start of a revival in dealmaking activity after a three-year hiatus.
Chief executive Jamie Dimon struck an upbeat tone, saying the US economy “has remained resilient” and that while the labour market had softened, “conditions do not appear to be worsening”.
“These conditions could persist for some time, particularly with ongoing fiscal stimulus, the benefits of deregulation and the Fed’s recent monetary policy,” Dimon said.
Although JPMorgan’s investment bankers fell short of expectations, its traders fared better. Equities traders brought in $2.9bn in revenues, up 39 per cent, while revenues from fixed-income trading rose 7.5 per cent to $5.4bn.
The bank’s results were also hit by $2.2bn of provisions for possible credit losses tied to JPMorgan’s agreement to take over Apple’s credit card portfolio from Goldman Sachs.
JPMorgan reported full-year net income of $57bn, down 2 per cent from 2024 but still the second straight year when the bank has generated more than $1bn a week in profits.
Shares rose 0.2 per cent in pre-market trading in New York.
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