JPMorgan Chase Q4 misses expectations as bond trading revenue drops

JPMorgan Chase posted a rise in fourth-quarter profit and revenue on Tuesday, but the numbers fell short of analysts' expectations as its bond trading revenue declined amid spikes in market volatility.

Net income rose 67% to $7.1bn, while earnings per share came in at $1.98 compared to $1.07 in the fourth quarter of 2017. However, EPS was below expectations of $2.20.

Meanwhile, revenue for the quarter increased to $26.8bn from $25.8bn the year before, missing expectations of just under $27bn.

Revenue in the bank's fixed income division declined by 18% to $1.9bn amid volatile markets, undershooting expectations of $2.2bn, but equity markets revenue increased 15% to $1.3bn.

Chief executive officer Jamie Dimon said: "2018 was another strong year for JPMorgan Chase, with the firm generating record revenue and net income, even without the impact of tax reform. Each line of business grew revenue and net income for the year, while continuing to make significant investments in products, people and technology, demonstrating the power of the platform.

"As we head into 2019, we urge our country’s leaders to strike a collaborative, constructive tone, which would reinforce already-strong consumer and business sentiment. Businesses, government and communities need to work together to solve problems and help strengthen the economy for the benefit of everyone."

At 1310 GMT, the shares were down 2.7% in pre-market trade to $98.18.