The biggest U.S. bank by assets saw a more than six percent drop in profit in the fourth quarter, hit by legal costs that topped $1 billion. Leah Duncan reports.
Fourth-quarter results for the first of the big banks are in, JP Morgan missing street estimates. The biggest U.S. bank by assets saw a more than six percent drop in profit, hit by legal costs that topped $1 billion, more than forecasted. The bank agreed to pay penalties last year over its conduct in foreign exchange markets, investigations there as well as in other areas are ongoing. Investors disappointed by the news, sending shares down two percent in early trading. Despite less than impressive report, analysts still upbeat. James Mitchell over at Buckingham Research, said "So, in all, a reasonably solid quarter in a challenging market environment, and we reiterate our BUY rating." Cancer survivor and CEO Jamie Dimon said "Each of our businesses and the company are very well positioned going into 2015 for long-term growth and success." Fixed-income trading revenue fell 23 percent in the quarter while revenue from home loans also declined. Investment banking fees however did climb eight percent to almost $2 billion driven by record debt underwriting fees. JP Morgan has been spending big on boosting its security system after more than 80 million accounts were exposed when its systems were attacked last year. Results also in for the biggest U.S. mortgage lender Wells Fargo. A slight increase in quarterly profit was reported there.