JPMorgan profit falls as it builds reserves for Apple credit card deal

JPMorgan reported quarterly profit of US$13 billion, down from US$14 billion a year earlier, after recording a US$2.2-billion provision tied to the Apple credit card portfolio; excluding that charge, profit rose to US$14.7 billion driven by trading and markets revenue.

JPMorgan reported lower reported profit for the quarter ended Dec. 31 while preparing for its role as the new issuer of Apple’s card. The bank booked a provision linked to the acquired portfolio alongside stronger trading results. Executives pointed to steady consumer demand and a resilient U.S. economy as background for performance. The report also comes amid industry discussion about a proposed U.S. interest-rate cap. Key details: - Reported profit for the quarter was US$13 billion, or US$4.63 per share, down from US$14 billion, or US$4.81 per share, a year earlier. - Excluding a one-time charge, quarterly profit rose to US$14.7 billion, or US$5.23 per share, supported by trading and markets revenue. - JPMorgan said it expects to record a US$2.2-billion provision for credit losses related to the Apple credit card portfolio. - Markets revenue increased about 17% in the quarter, with fixed income up 7% and equities up about 40%. - The bank became the new issuer of Apple’s iPhone credit card earlier this month. - The article notes a proposed U.S. policy to cap interest rates at 10% has been floated and that an industry group warned it could tighten credit access. Summary: The quarterly results reflect both a sizable provision tied to the Apple card portfolio and stronger trading-led revenue. The report underscores expansion in the bank’s card business amid broader market and policy uncertainty. Undetermined at this time.