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JPMorgan Chase is trading lower after reporting fiscal Q4 results. The company missed on GAAP EPS, although adjusted EPS came in better than expected. Revenue increased 7.1% yr/yr to $45.8 bln, which was slightly below analyst expectations. Ahead of the earnings details, it is worth noting that JPM announced last week that Chase will become the new issuer of the Apple Card, with an expected transition period of approximately 24 months, while Mastercard will remain the payment network.

• Corporate & Investment Bank (CIB) revenue rose 10% yr/yr, supported by strong client activity.
• Markets revenue surged 17%, benefiting from robust demand for financing and healthy trading volumes.
• Payments revenue reached a record $5.1 bln, driven by continued deposit growth and higher fees.
• Consumer & Community Banking (CCB) revenue increased 6%, as the franchise continued to add customers at a strong pace. During the year, JPM opened 1.7 mln net new checking accounts and 10.4 mln new credit card accounts. •
• Asset & Wealth Management (AWM) revenue rose 13% yr/yr to a record $6.5 bln, reflecting solid market levels and net inflows.
• Credit costs totaled $4.7 bln, including $2.5 bln of net charge-offs and a $2.1 bln net reserve build. The CCB reserve build of $2.2 bln was partly related to the forward purchase commitment for the Apple Card portfolio.
• Investment Banking revenue declined 2% yr/yr to $2.6 bln, with IB fees down 5% to $2.3 bln, reflecting lower activity across all products.
• Management commentary was a key focus. CEO Jamie Dimon said the U.S. economy remains resilient. While labor markets have softened, conditions do not appear to be deteriorating materially. Consumers continue to spend, and businesses remain generally healthy, supported by fiscal stimulus, potential deregulation benefits, and the Fed's recent monetary policy actions. However, JPM cautioned that markets may be underestimating risks, including geopolitical uncertainty, sticky inflation, and elevated asset prices.

Briefing.com Analyst Insight:

JPMorgan's quarter underscored the strength and diversification of its franchise, with solid performance across most major business lines offsetting some pockets of weakness, particularly in Investment Banking. While the headline GAAP EPS miss and slightly light revenue weighed on sentiment, underlying trends in Markets, Payments, and customer acquisition remain constructive. Credit costs were elevated, but largely explainable, including reserves tied to the Apple Card portfolio transition. Dimon's cautiously optimistic macro view aligns with the bank's results: resilient fundamentals paired with heightened vigilance. Overall, JPM continues to look like a high-quality operator, though near-term upside may be tempered by concerns over credit card caps and macro concerns.