The bank also forecast net interest income, or the difference between what it earns on loans and pays out on deposits, for 2025 above analysts' expectations, despite issuing repeated warnings that it may not sustain the level of growth.
JPMorgan's strong results bode well for the banking sector, which is seeing a revival in deal-making and fund-raising activities as the U.S. Federal Reserve cuts interest rates to bolster the economy. Goldman Sachs (GS.N) also posted a rise in fourth-quarter profit, benefiting from robust performance in its investment banking and trading units.
"The U.S. economy has been resilient," CEO Jamie Dimon said, citing low unemployment and healthy consumer spending.
"Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business," Dimon said. Still, he cited risks: government spending, inflation, and geopolitical conditions.
JPMorgan's Wall Street operations were lifted by a 49% jump in investment banking fees and 21% higher trading revenue in the fourth quarter, surpassing executives' forecast in December.
Stronger trading in credit, currencies and emerging markets helped the fixed-income unit, while resurgent activity in derivatives trading and cash market helped its equities business.
NII BOOST
The bank sees NII of $94 billion for 2025, higher than the $91 billion that analysts had forecast, according to estimates compiled by LSEG.
In the fourth quarter, however, NII fell 3% to $23.5 billion, marking the first year-over-year decline since 2021.
"JPMorgan's earnings certainly were strong... A few things that stood out was the fact that JPMorgan's interest income declined (in Q4), as we saw depositors continue to demand higher interest rates," said Octavio Marenzi, CEO of consulting firm Opimas.
The bank's shares climbed nearly 1% in premarket trading. They ended 2024 with a nearly 41% gain, outperforming the benchmark S&P 500 (.SPX) index.
The financial industry is expected to benefit from Donald Trump's return to the White House, as his administration is expected to tap regulators who could ease capital rules and merger approvals.
"We have consistently said that regulation should be designed to effectively balance promoting economic growth and maintaining a safe and sound banking system," Dimon said.
JPMorgan's profit for 2024 rose 18% to $58.5 billion. In the fourth quarter, it earned $14 billion, or $4.81 per share, compared with $9.3 billion, or $3.04 per share, a year earlier.
