JPMorgan Chase posted its most profitable year ever in 2019, capping it off with an $8.5 billion (21 percent) growth in net income in the fourth quarter to finish the year with $29.9 billion in profits.
The bank recorded $474 million in profits from mortgage fees and related income in the fourth quarter, more than double the $203 million it saw in the fourth quarter of 2018.
The third quarter was the company’s biggest in 2019 for mortgage-related income at $886 million, according to supplemental earnings information included with the report.
“JPMorgan Chase produced strong results in the fourth quarter of 2019, capping off a solid year for the firm where we achieved many records, including record revenue and net income,” JPMorgan Chase Chairman and CEO Jamie Dimon said in the bank’s latest earnings report. “While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity towards the end of the year. The U.S. consumer continues to be in a strong position and we see the benefits of this across our consumer businesses.”
Average deposits increased by 5 percent in the bank’s consumer and community banking operations, Dimon noted, adding that that growth could be attributed, in part, to lower short-term rates.
“We continued to add customers in new and existing markets, and deepen our customer relationships by offering great deposit, investment and lending products,” Dimon said. “The robust holiday season was reflected in our card sales volumes and loan balances, up 10 percent and 8 percent, respectively.”
In terms of business investment and growth, Dimon noted that the bank added more than 70 new branches in 16 new markets in 2019 and continued to expand its commercial banking internationally, becoming the first U.S. bank to be approved for a majority-owned securities business in China. He also touched on the company’s efforts to continue to research and implement new technology.
“We continue to make large investments in technology, including A.I. (artificial intelligence), cloud, digital and payments, as well as other investments in innovation, talent, security and risk controls,” Dimon said. “These actions will help us continue to grow and serve our clients going forward. I am extremely proud of how we serve our customers, clients and communities globally – we stand by them in good times and in tough times, and work to earn their trust every single day.”
JPMorgan Chase also lowered its credit exposure with respect to consumer loans in 2019, finishing the fourth quarter with just under $504 billion in consumer loans compared with $530 billion in the fourth quarter of 2018.