JPMorgan Slumps on Q4 Numbers

JPMorgan Chase & Co. (NYSE: JPM) lost ground Friday after release of fourth-quarter financial figures.

The banking giant reported revenue of $29.2 billion; managed revenue of $30.2 billion. Credit costs net benefit of $1.9 billion included $2.9 billion of net reserve releases and $1.1 billion of net charge-offs. Average loans were up 1%; average deposits up 35% n $1.4 trillion liquidity sources, including HQLA and unencumbered marketable securities

Average deposits were up 30%; client investment assets up 17% n Average loans down 6%; debit and credit card sales volume up 1% n Active mobile customers up 10%.

Said CEO Jamie Dimon, "JPMorgan Chase reported strong results in the fourth quarter of 2020, concluding a challenging year where we generated record revenue, benefiting from our diversified business model and dedicated employees.

"While we reported record profits of $12.1 billion, we do not consider the reserve takedown of $2.9 billion to represent core or recurring profits – essentially reserve calculations, while done extremely diligently and carefully, now involve multiple, multi-year hypothetical probability-adjusted scenarios, which may or may not occur and which can be expected to introduce quarterly volatility in our reserves.

JPM shares fell back $2.85, or 2%, to $138.32.