American banking giant JPMorgan Chase has posted a net income of $5.4bn for the fourth quarter of 2015, an increase of 10% compared to $4.9bn in the year ago quarter.
Net revenue for the quarter was $23.7bn, up 1% compared to $23.5bn in the fourth quarter of 2014. The decrease was driven by higher revenue in corporate and consumer & community banking, largely offset by lower revenue in corporate & investment banking and asset management.
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The group’s provision for credit losses was $1.25bn, an increase of 49% from $840m a year ago due to reserve increases in the current quarter versus reserve releases in the prior year quarter, partially offset by lower net charge-offs.
Noninterest expense at the bank was $14.2bn, down 7% from $15.4bn a year earlier, driven by lower corporate & investment banking expense, reflecting lower legal expense and lower compensation, as well as consumer & community banking efficiencies.
The bank’s corporate and investment banking division reported a net income $1.7bn for the fourth quarter of 2015, up 80% compared to $972m in the year ago fourth quarter.
JPMorgan said that its asset management division posted net income of $507m, a decrease of 6% from $540m in the year ago period.
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By GlobalDataThe unit’s net revenue stood at $3bn, down 5% from $3.2bn in the year ago quarter.
Noninterest revenue at asset management division was $2.2bn, down 5%, including a benefit from the refinement in the value of a held-for-sale asset.
Assets under management (AuM) at the unit were $1.7 trillion, a decrease of 1% compared to the prior year quarter, due to the effect of lower market levels, partially offset by net inflows to long-term products.
JPMorgan chairman and CEO Jamie Dimon said: "The consumer business continues to gather deposits, outpacing the industry. Markets were somewhat quieter, and we saw the impact reflected in the results of our trading and Asset Management businesses."
Dimon added: "Looking at performance for the full year, 2015 was another record year for the Firm for net income and EPS, and importantly we exceeded on all of our commitments -balance sheet optimization, capital, GSIB and expense. On operating leverage, we delivered core efficiencies while continuing to invest in innovation and technology, infrastructure and talent – crucial for protecting the company and customers, and for our growth."
