JPMorgan Chase, the top U.S. bank by assets, reported better-than-expected profits, and expressed confidence about its business in 2016. Bobbi Rebell reports.
JPMorgan Chase setting a high bar for bank earnings. Quarterly profit rose sharply at the biggest U.S. bank, revenue inched higher. S&P Capital IQ's Erik Oja: SOUNDBITE: ERIK OJA, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING: "What's working in their favor is very strong consumer lending, very strong auto lending and continuing high credit quality from the U.S. consumer, which means that JPMorgan Chase has to put aside not as much money as people had originally anticipated for bad loans. So, it looks like credit quality and loan growth is very strong for the consumer." Oja has a buy rating on the stock, which rose after the earnings were released Thursday. Cost cuts and a smaller legal bill also helped boost profit. JPMorgan said it expects to benefit from the Federal Reserve's December interest rate hike, the first in almost a decade. Wunderlich Securities Art Hogan: SOUNDBITE: ART HOGAN, CHIEF MARKET STRATEGIST, WUNDERLICH (ENGLISH) SAYING: "Banks are very tied to the economy, economic growth both domestically and globally. JPMorgan actually was able to buck that trend. Did a very nice job. Very clean quarter. Very little talk about how much they had to pay in legal fees. I'm hoping that is the template for the rest of the financial space." The bank is setting aside more money for losses for loans extended to energy companies in the coming year. Despite that, JPMorgan was confident about its business in 2016. On deck for results Friday: Citigroup and Wells Fargo.