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JPMorgan Chase reports record profits for the fourth quarter

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JPMorgan Chase reported Tuesday a record profit in the fourth quarter and lowered the amount of money it had set aside for potential delinquencies, which it had greatly inflated at the beginning of the pandemic, but the U.S. bank remains cautious for the coming months.

JPMorgan
The bank also benefited greatly from the good health of its investment banking activities.

A statement from the institution details that it earned 12.1 billion dollars from October to December for a turnover of 29.2 billion dollars.

In the year as a whole, marked by the spread of Covid-19 and its devastating effects on the economy, JPMorgan Chase recorded a net profit of 29.1 billion dollars for a turnover of 119.5 billion dollars.

In the second and third quarters, the firm set aside tens of billions of dollars to cover potential delinquencies from individuals and businesses as a result of the pandemic.

It reduced its provisions by $1.9 billion at the end of the year, thanks primarily to “positive developments” on the vaccine side and “measures to support the economy,” said CEO Jamie Dimon.

The bank remains cautious, however, and is keeping more than $30 billion in cash on hand despite “significant near-term economic uncertainty,” he added.

“Consumer spending continued to increase, as evidenced by the increase in debit and credit card spending for the quarter as a whole,” Dimon said.

Profits rose 82 percent to $5.3 billion, as well, thanks to the strength of the bank’s investment banking business.

During the period, revenues from stock, bond, and commodity brokerage jumped 20 percent, due in part to the U.S. presidential election and the Covid-19 vaccine.

Before the New York Stock Exchange opened, shares of the bank rose 0.6 percent.

For MetaNews.

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