JPMorgan misses profit estimates as bond trading weakened; shares fall 3%

JPMorgan Chase & Co reported a lower-than-expected quarterly profit as weakness in bond trading due to spikes in market volatility at the end of the year more than offset gains from higher interest rates and loan growth.
 

Shares of the largest US bank by assets fell 3 per cent in early trading as the lender reported declines in revenue in three of its four main businesses in the fourth quarter.
 

Bond trading revenue fell 16 per cent, as challenging market conditions hit credit and commodities trading.
 

JPMorgan said net income for the fourth quarter ended December.
 

31 rose to $7.07 billion, or $1.98 per share, from $4.23 billion, or $1.07 per share, a year ago, when it took a one-time charge due to the US tax reform.
 

Analysts on average had expected earnings of $2.20 per share, according to IBES data from Refinitiv.
 

Revenue rose 4.1 per cent to $26.80 billion, just shy of analysts' average expectation of $26.83 billion.
 

Rival Citigroup Inc reported a better-than-expected 14 per cent rise in adjusted quarterly profit on Monday, mainly helped by cost cuts. Well Fargo & Co is expected to report later in the day.