Strong growth across its banking and asset management segments drove JPMorgan Chase's (JPM) fourth quarter earnings higher, the bank reported on Wednesday, defying concerns about the global economy and beating Wall Street's expectations.
Yet despite the constructive earnings results, JPMorgan Chairman and CEO Jamie Dimon paid a hefty price for a trading scandal that cost the bank more than $6 billion. After a report faulted the bank's risk controls, the board stripped Dimon's 2012 pay in half, approving compensation of only $11.5 million versus $23 million in the previous year. (Read More Below the Video.)
The so-called "London Whale" imbroglio became a major source of embarrassment for Dimon, one of Wall Street's longest serving chief executives who has publicly complained about efforts to tighten banking regulation.
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The banking giant posted fourth-quarter earnings excluding items of $1.39 per share, up from 90 cents a share in the comparable year-ago quarter and above Thomson Reuters' consensus estimates of $1.16. During the quarter, JPMorgan posted revenues of $24.4 billion, up from $22.2 billion a year ago and broadly in line with analysts' expectations.
Net income for the quarter was $5.7 billion, compared with $3.7 billion in the year-ago period.
JPMorgan reported record fees from debt underwriting and maintained its top ranking for global investment banking -- two cornerstones of the bank's business. The New York-based banking behemoth also said asset management and commercial banking revenues had hit a record.
"We continued to see favorable credit conditions across our wholesale loan portfolios and strong credit performance in our credit card portfolio, where charge-off rates remain at historic lows," Dimon said in a statement.
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"The real estate portfolios, while at elevated levels of losses, continued to show improvement as the housing market and economy continued to recover," he added.
After the earnings announcement, the company's shares fell by more than a percent in pre-market trading. (Click here for the latest pre-market quote.: JPM)
Reuters contributed to this report.
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