Last year, JPMorgan Chase was more profitable than ever, even as its results fell last quarter.
The largest bank in the United States reported Friday that it achieved a record $49.6 billion in annual net income, the largest ever in the history of the American banking industry. This happened during what was the scariest year for the industry since the 2008 financial crisis.
This result – helped by better loan margins and the acquisition of failed regional lender First Republic – was 31% better than its 2022 net profit.
He blew away all competitors. JPMorgan’s annual net income exceeded Bank of America (BAC) by $23 billion and Wells Fargo (WFC) by $30 billion.
JPMorgan’s breakaway from the rest of the pack in 2023 was on full display on Friday as the largest U.S. banks reported fourth-quarter and full-year results.
But what was also clear on Friday was that even JPMorgan is not immune to a difficult period for the banking industry. Three large regional banks went bankrupt last year, sparking a panic that put many institutions on the line.
JPMorgan was among the banks that paid the price for the disruption in the fourth quarter. Its quarterly profit of $9.3 billion fell 15% from a year earlier, largely because it took a one-time hit of about $3 billion to pay a special assessment imposed by the Federal Deposit Insurance Corporation.
JPMorgan stock, which recently reached an all-time high, rose slightly in premarket trading.
Other major banks were also affected by similar FDIC ratings, which were used to cover the $18 billion losses incurred by the FDIC insurance fund as a result of the bankruptcy of Silicon Valley Bank and Signature Bank last March.
At Bank of America, fourth-quarter earnings were down nearly 56% from a year ago due to the FDIC’s assessment and other charges related to year-end ESG financing and the reshaping of one of its benchmark lending rates.
Wells Fargo’s quarterly earnings rose 9%, but that’s largely because the same period last year saw operating losses worth billions in legal and regulatory costs.
David Hollerith is a senior reporter at Yahoo Finance covering banking, cryptocurrency, and other areas of finance.
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