JPMorgan Chase & Co. reported net income for the fourth quarter of 2014 of $4.9 billion, compared with net income of $5.3 billion in the fourth quarter of 2013.
Net income for full-year 2014 was a record $21.8 billion, compared with $17.9 billion in the prior year.
The earnings were disappointing to some on Wall Street and contributed to a sharp stock market drop earlier in the week.
Jamie Dimon, CEO, commented on the financial results: “Our businesses continue to demonstrate strong momentum and expense discipline. Consumer & Community Banking delivered impressive growth in deposits and investment assets in the fourth quarter and throughout 2014, while outperforming its expense reduction target for the year. Mortgage originations improved sequentially in the fourth quarter, despite a seasonally slow quarter. Our Card business delivered double-digit sales volume growth, outpacing the industry for the 27th consecutive quarter. Auto had a good quarter and the pipeline remains strong.”
Chase has its credit card headquarters in Wilmington and has been expanding employment in Delaware.
Net income was $2.2 billion, a decrease of $269 million, or 11%, compared with the prior year, due to higher provision for credit losses and lower net revenue, largely offset by lower noninterest expense.
Net interest income was $7.1 billion, down $47 million, driven by spread compression, predominantly offset by higher deposit balances in Consumer & Business Banking and higher loan balances in the credit card area.
Noninterest revenue was $3.8 billion, a decrease of $443 million, or 10%, driven by lower mortgage fees and related income and non-core portfolio exits in the credit card area.
Chase cardholders accounted for over $600 billion, or approximately 16% of total U.S. credit and debit purchase volume1. Credit card sales volume1 was $123.6 billion, up 10 percent from the prior year. General purpose credit card sales volume growth has outperformed the industry for 27 consecutive quarters1.
Credit Card loan balances at the end of 2014 were $131.0 billion, up $3.3 billion, or 3 percent from the prior year.
