JPMorgan Shares Slide After Q4 Earnings Amid Apple Card Reserve and Weak Deal Fees

Shares of JPMorgan Chase & Co. fell about 4.2% in after-hours trading Tuesday to $310.90 following the release of the bank’s fourth-quarter results. The decline highlights investor concerns over credit card performance and slowing investment banking fees.


JPMorgan reported net income of $13.0 billion for the quarter, or $4.63 per share. This included a $2.2 billion reserve linked to the Apple Card portfolio. Excluding this reserve, net income would have risen to $14.7 billion, or $5.23 per share. Revenue totaled $45.8 billion, with markets revenue up 17%. The bank returned $7.9 billion through share buybacks and paid a dividend of $1.50 per share.


Net interest income, the difference between earnings on loans and deposits, increased 7% to $25.1 billion. JPMorgan expects interest income, excluding markets, to reach around $95 billion in 2026. Meanwhile, investment banking fees dropped 5%, missing expectations and raising concerns about dealmaking activity.


CEO Jamie Dimon emphasized that the economy remains resilient despite shifting market expectations for interest rates. He also warned that “sticky inflation” and elevated asset prices remain potential risks for investors.


Political developments have added further uncertainty. President Donald Trump’s proposal to cap credit card interest rates for a year has unsettled the banking sector. CFO Jeremy Barnum noted that such a cap could prompt banks to restrict credit availability rather than reduce costs, potentially affecting consumers and the broader economy.


The Apple Card reserve illustrates the challenges of credit card expansion. While the portfolio may generate future balances and fees, the reserve shows the potential costs and risks if regulators or lawmakers scrutinize card pricing.


Results from other major banks are expected soon, ahead of the Federal Reserve’s policy meeting scheduled for January 27-28. The Fed’s decisions on interest rates will likely influence banks’ earnings prospects for the coming year.