(Reuters) – JPMorgan Chase & Co (JPM.N), the biggest U.S. bank by assets, reported a higher-than-expected quarterly profit on Friday as gains in net interest income offset a slowdown in trading revenue.
The bank recorded a $2.4 billion charge to cover a new one-time repatriation tax on income it has kept abroad and to adjust the value of its deferred tax assets and liabilities.
Wall Street analysts were expecting a $2 billion hit, based on comments the company made in December.
The sweeping changes in the tax law enacted by President Donald Trump are expected to mean short-term pain but long-term gain for large U.S. banks that do business worldwide.
Equity trading revenue was flat, including the impact of a mark-to-market loss of $143 million on a margin loan to a single client. The loan is related to South African furniture retailer Steinhoff, according to a person familiar with the matter.
Rising interest rates, however, helped cushion the blow from lower trading revenue, lifting net interest income by 11 percent to $13.4 billion.
Net income, reported under generally accepted accounting principles (GAAP) and including the tax charge, fell to $4.23 billion, or $1.07 per share, in the fourth quarter ended Dec. 31, from $6.73 billion, or $1.71 per share, a year earlier.
JPMorgan’s shares were little changed at $110.75 in light premarket trading.
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