JP Morgan Chase & Co (NYSE:JPM) saw its shares fall in premarket trade after the company’s mixed fourth quarter results failed to impress the market, with corporate and investment banking revenue falling below market expectations.
In a statement, the banking giant said CIB revenue dropped 12% to US$7.48bn, below market consensus for US$7.91bn.
New one-time repartriation tax on income kept abroad
In the fourth quarter, net income fell 32% to US$2.3bn, while banking revenue rose 10% to US$3.1bn, led by the 10% hike in investment banking revenue.
In the period, markets and investor services revenue dropped 22% to US$4.4bn, hit by the 26% drop in markets revenue.
Fixed income markets revenue fell 34% while equity markets was flat, the company said.
The biggest US bank by assets, recorded a US$2.4bn charge to cover a new one-time repatriation tax on income it has kept abroad and to adjust the value of its deferred tax assets and liabilities.
Net profit, adjusted to exclude the tax charge and other one-time items, came in at US$6.7bn or US$1.76 per share, above Wall Street expectations for US$1.69.
In premarket trade, JPM was down 0.97% at US$110.84.