The deal would strengthen JPMorgan’s foothold in credit cards and add to a long list of strategic wins for CEO Jamie Dimon, who has turned the bank into a leading player across retail and investment banking.
Profit fell to US$13 billion, or US$4.63 per share, in the three months ended Dec 31, the bank said today.
That compares with US$14 billion, or US$4.81 per share, a year earlier.
Excluding the one-time charge, JPMorgan’s quarterly profit increased to US$14.7 billion, or US$5.23 per share, fueled by trading.
Shares of the bank rose 1.5% before the bell.
“The US economy has remained resilient,” Dimon said in a statement.
“While labour markets have softened, conditions do not appear to be worsening.
“Meanwhile, consumers continue to spend, and businesses generally remain healthy,” Dimon added.
Executives across the industry have pointed to resilient consumers, backed by a strong job market and rising pay, who have propped up borrower demand and kept loan payments steady.
Markets swung sharply in the quarter as concerns about a bubble in AI stocks intensified after two years of broad gains.
CEO warnings that equities were due for a correction added to investor caution.
Meanwhile, bond markets remained jittery as uncertainty persisted around when and how much the US Federal Reserve would cut rates.
Markets revenue at JPMorgan climbed 17% in Q4, with fixed income up 7% and equity surging 40%.
Credit card expansion
Earlier this month, JPMorgan and Apple struck a deal under which the bank became the new issuer of the iPhone maker’s card.
The bank had said it expects to record a US$2.2 billion provision for credit losses in Q4 tied to the portfolio.
The deal comes at a critical juncture for the credit card industry, which could face a sharp shift if a proposal by US President Donald Trump to cap interest rates at 10% moves forward.
While Trump has said he expects companies to comply by Jan 20, Wall Street analysts remain doubtful the measure can be implemented without congressional approval.
A banking industry body warned last week that the move could tighten access to credit for consumers and small businesses and drive borrowers toward unregulated lenders.