(New York) The American bank JPMorgan Chase saw its net profit decline in the fourth quarter of 2023, due to a compulsory contribution to the deposit guarantee fund, a consequence of the spring banking crisis.
Net profit stood at $9.3 billion, down 15% year-on-year, according to a press release published Friday.
Reported per share and excluding exceptional items, the indicator most followed by the market, it stands at $3.97, above the 3.36 expected by analysts.
JPMorgan Chase saw its results cut by $2.9 billion, paid to the American Deposit Insurance Agency (FDIC) to replenish its reserves.
The FDIC, in fact, had to absorb some 16.3 billion in losses following the failure of several American establishments.
At the beginning of March, Silicon Valley Bank (SVB) and Silvergate Bank were caught in a panic and massive withdrawals.
The first was placed under the control of the FDIC and the second closed.
In the process, Signature Bank and First Republic were caught up in the contagion and urgently sold to New York Community Bank and JPMorgan Chase respectively.
In an attempt to stabilize the system, the FDIC committed to guaranteeing all customer deposits of SVB and Signature Bank, while the ceiling is usually $250,000 per person and per establishment.
In the fourth quarter of 2023, JPMorgan Chase saw its turnover increase by 12%, to $38.5 billion, less than the $39.7 billion anticipated by analysts.
In detail, all of the bank’s major activities experienced double-digit growth, with the exception of corporate and investment banking (+3%).
This division even saw its net profit contract by 24%.
“The U.S. economy remains resilient, with consumers continuing to spend and markets planning for a soft landing,” commented CEO Jamie Dimon, quoted in the press release.
The leader nevertheless warned that inflation, which has caused a sudden rise in interest rates, could be “more stubborn than the market thinks”, due to high public spending, the reorganization of supply chains and rising health costs.