JPMorgan Chase 2020 Q4 Earnings

JPMorgan Chase & Co. (NYSE:JPM) is one of the oldest financial institutions in the U.S., with its history dating back over 200 years. The bank, in its present state, is the result of several mergers between different financial institutions. Currently, it is the largest American bank by market capitalization and famous for providing a range of investment banking and financial services to customers including government institutions and big corporations.

JPM stock was trading around $140 at the start of 2020. But like other financial institutions, JPMorgan shares also lost a substantial value following the Covid-19 outbreak. Its share price touched a low of around $77 in March as the pandemic severely affected the economy.

Meanwhile, interest rates and other borrowing rates remained low during the pandemic, pressurizing the operating margins of leading banks. Nevertheless, JPM stock regained most of its lost value in the subsequent months, particularly during the fourth quarter, and ended the year at $127.07.

Jamie Dimon

The bank on Friday announced its financial results for the fourth quarter above expectations. It reported earnings of $12.1 billion, or $3.79 per share for the three-month period ended Dec. 31, up 42 percent from $2.57 per share in the comparable period of 2019. Revenue came in at $30.2 billion, versus $29.2 billion in the same quarter, a year earlier. Analysts on average were looking for a profit of $2.62 per share and revenue of $30.2 billion.

Speaking on the results, CEO Jamie Dimon said in a statement, “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.”

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Despite better-than-expected results, JPM shares slipped 1.79 percent to $138.64 in the previous trading session. Overall, the stock is up about 9 percent on a year-to-date basis. JP Morgan was ranked #1 in our list of the 10 best bank stocks to buy now.

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Disclosure: None. This article is originally published at Insider Monkey.