JPMorgan Chase Reports Y/Y Revenue Drop in Q4 2021

JPMorgan Chase & Co. has just posted its financial results for the fourth quarter of 2021, with Markets & Securities Services revenue down from the year-ago quarter.

The Corporate & Investment Bank (CIB) business delivered net income of $4.8 billion for the final quarter of 2021, down 9% from the year-ago quarter. CIB net revenue was $11.5 billion, up 2% in annual terms.

Banking revenue was $5.3 billion, up 28%. Investment Banking revenue was $3.2 billion, up 28%, driven by higher Investment Banking fees, up 37%, predominantly driven by higher advisory fees.

Payments revenue was $1.8 billion, up 26%, and included net gains on equity investments.

Excluding these net gains, revenue was up 7%, predominantly driven by higher fees and deposits, largely offset by deposit margin compression. Lending revenue was $263 million, up 36%, predominantly driven by lower mark-to-market losses on hedges of accrual loans compared to the prior year.

Markets & Securities Services revenue was $6.3 billion, down 13% from the year-ago quarter. The result was also lower than the $7.5 billion in revenue registered in the third quarter of 2021.

Markets revenue was $5.3 billion, down 11%. Fixed Income Markets revenue was $3.3 billion, down 16%, driven by a challenging trading environment in Rates, as well as lower revenues in Credit and Currencies & Emerging Markets compared to a strong prior year. Equity Markets revenue was $2.0 billion, down 2%, driven by lower revenue in derivatives, largely offset by higher revenue in Prime.

Securities Services revenue was $1.1 billion, relatively flat to the prior year.

Source: fxnewsgroup