JPMorgan Chase CEO Jamie Dimon said the bank needed to "accept responsibility" for its legal issues.
NEW YORK (CNNMoney)
The bank earned $5.3 billion, or $1.30 per share, in the final three months of 2013. Revenue fell 1% to $24.1 billion.
Excluding certain one-time items, JPMorgan (JPM, Fortune 500) said it earned $1.40 per share in the quarter. That topped analysts' expectations for $1.35 per share. Revenue beat expectations as well.
Shares of JPMorgan, the largest bank by assets, were little changed ahead of the opening bell.
JPMorgan took a charge of $1.1 billion in the fourth quarter to resolve some of its biggest legal headaches.
CEO Jamie Dimon said in a statement that the bank is pleased "to have put some significant issues behind us this quarter," adding that "it was in the best interests of our company and shareholders for us to accept responsibility, resolve these issues and move forward."
The results come less than two weeks after JPMorgan agreed to pay $2.6 billion to settle lawsuits stemming from its relationship with disgraced financier Bernard Madoff.
In November, JPMorgan paid the Justice Department a record $13 billion to resolve allegations linked to the sale of risky mortgage securities during the housing bubble. That came on the heels of a $4.5 billion settlement with institutional investors who suffered losses on mortgage securities purchased from JP Morgan in the run-up to the financial crisis.
Dimon said in October that the bank has set aside $23 billion to cover its various legal costs.
Mortgage slowdown: JPMorgan said revenue in its mortgage banking business fell during the fourth quarter. Rising interest rates may have curbed demand for home refinancing. Wells Fargo (WFC, Fortune 500), which also released its fourth-quarter results Tuesday morning, reported a big drop in mortgage activity as well.
Net income from JPMorgan's corporate and investment banking activities plunged 57%from a year ago. The unit reported a $1.5 billion loss on a credit adjustment tied to certain complex derivatives and over-the-counter securities.
For the full year, JPMorgan earned $17.9 billion, or $4.35 per share. That's down from $21.3 billion, or $5.20 per share, in all of 2012.
It appears that investors are already forgiving JPMorgan for its sins from the financial crisis. The stock jumped 33% in 2013.
Bank stocks have done extremely well lately thanks to continued improvement in the economy, which should lead to a pickup in lending and higher interest rates. The financial sector is expected to post the biggest profit growth in the quarter, according to FactSet.
But new regulations and a lull in certain markets have undermined banks' revenue growth, particularly in fixed-income, currency and commodity trading.
Investors are hoping to get more clarity about the health of the nation's largest financial institutions. All six of the big banks are due to report their latest results. Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500), Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500) are on tap to release their earnings later this week.
First Published: January 14, 2014: 7:29 AM ET
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