<p>JPMorgan Chase & Co reported a 14 per cent fall in fourth-quarter earnings on Friday but sailed past analysts' estimates, helped by a stellar performance at its investment banking unit that offset a slowdown in its trading arm.</p>.<p>The country's largest lender, whose fortunes are often seen as a barometer of the health of the US economy, posted a 28 per cent jump in investment banking revenue, while overall trading revenue fell 13 per cent.</p>.<p>Large US lenders have benefited from higher consumer spending, while their trading arms gained from exceptional volatility in financial markets last year.</p>.<p>However, soaring inflation, a potential Omicron-induced economic slowdown and trading revenues returning to normal levels after an exceptional year are set to challenge the banking industry's growth in the coming months.</p>.<p>JPMorgan's shares, up 6 per cent this year, slipped 3 per cent in trading before the bell on Friday.</p>.<p>"The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks," JPMorgan Chief Executive Jamie Dimon said.</p>.<p>"We remain optimistic on US economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth."</p>.<p>The trading shortfall in the forth quarter was cushioned by yet another strong showing at its investment bank as global mergers and acquisitions activity shattered all-time records in 2021 and pushed investment banking fees to a record-high in the first half of the year.</p>.<p>Wall Street banking remained strong for most of the past year, as large, cash-flush financial sponsors and corporates embarked on a dealmaking spree, helping drive up investment banking fees to their highest-ever levels.</p>.<p>During the quarter, JPMorgan maintained its position as the banking world's second-biggest provider of worldwide M&A advisory after Goldman Sachs, according to Refinitiv. The league tables rank financial services firms by the amount of M&A fees they generate.</p>.<p>Overall, the lender posted a profit of $10.4 billion, or $3.33 per share, in the quarter ended Dec. 31. Analysts had estimated a profit of $3.01 per share, according to Refinitiv data.</p>.<p>Revenue remained nearly flat at $30.3 billion. The bank's earnings were also buoyed by reserve releases of $1.8 billion.</p>.<p>During the quarter, JPMorgan took down more funds that it had set side during the height of the pandemic in anticipation of an expected wave of loan defaults.</p>.<p>But that didn't happen, thanks to a consumer-friendly monetary policy and government stimulus checks that buoyed consumer spending, allowing banks to release billions from their loan-loss reserve.</p>.<p>Citigroup will report results later on Friday. Wells Fargo & Co reported an 86 per cent jump in fourth-quarter profit on Friday, propped up by gains from the sale of its corporate trust and asset management businesses.</p>.<p>Goldman Sachs, Wall Street's premier investment bank, will report earnings on Tuesday, while Morgan Stanley and Bank of America round out the earnings season on Wednesday.</p>.<p><strong>Watch the latest DH Videos here:</strong></p>
<p>JPMorgan Chase & Co reported a 14 per cent fall in fourth-quarter earnings on Friday but sailed past analysts' estimates, helped by a stellar performance at its investment banking unit that offset a slowdown in its trading arm.</p>.<p>The country's largest lender, whose fortunes are often seen as a barometer of the health of the US economy, posted a 28 per cent jump in investment banking revenue, while overall trading revenue fell 13 per cent.</p>.<p>Large US lenders have benefited from higher consumer spending, while their trading arms gained from exceptional volatility in financial markets last year.</p>.<p>However, soaring inflation, a potential Omicron-induced economic slowdown and trading revenues returning to normal levels after an exceptional year are set to challenge the banking industry's growth in the coming months.</p>.<p>JPMorgan's shares, up 6 per cent this year, slipped 3 per cent in trading before the bell on Friday.</p>.<p>"The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks," JPMorgan Chief Executive Jamie Dimon said.</p>.<p>"We remain optimistic on US economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth."</p>.<p>The trading shortfall in the forth quarter was cushioned by yet another strong showing at its investment bank as global mergers and acquisitions activity shattered all-time records in 2021 and pushed investment banking fees to a record-high in the first half of the year.</p>.<p>Wall Street banking remained strong for most of the past year, as large, cash-flush financial sponsors and corporates embarked on a dealmaking spree, helping drive up investment banking fees to their highest-ever levels.</p>.<p>During the quarter, JPMorgan maintained its position as the banking world's second-biggest provider of worldwide M&A advisory after Goldman Sachs, according to Refinitiv. The league tables rank financial services firms by the amount of M&A fees they generate.</p>.<p>Overall, the lender posted a profit of $10.4 billion, or $3.33 per share, in the quarter ended Dec. 31. Analysts had estimated a profit of $3.01 per share, according to Refinitiv data.</p>.<p>Revenue remained nearly flat at $30.3 billion. The bank's earnings were also buoyed by reserve releases of $1.8 billion.</p>.<p>During the quarter, JPMorgan took down more funds that it had set side during the height of the pandemic in anticipation of an expected wave of loan defaults.</p>.<p>But that didn't happen, thanks to a consumer-friendly monetary policy and government stimulus checks that buoyed consumer spending, allowing banks to release billions from their loan-loss reserve.</p>.<p>Citigroup will report results later on Friday. Wells Fargo & Co reported an 86 per cent jump in fourth-quarter profit on Friday, propped up by gains from the sale of its corporate trust and asset management businesses.</p>.<p>Goldman Sachs, Wall Street's premier investment bank, will report earnings on Tuesday, while Morgan Stanley and Bank of America round out the earnings season on Wednesday.</p>.<p><strong>Watch the latest DH Videos here:</strong></p>