Net interest income grew 9%, driven by higher rates and loan growth. Non-interest revenue dropped 1% to $12.3 billion. Non-interest expense rose 6%, driven mainly by investments in the business, including technology, marketing and real estate.
Also see: JPMorgan Chase Q4 2018 Earnings Transcript
The provision for credit losses increased by $240 million from last year to $1.5 billion in the quarter, driven by higher net reserve builds in the Consumer and Wholesale portfolios. Return on common equity was 12% in the quarter.
Earnings preview: JPMorgan will brave global headwinds in Q4
JPMorgan saw revenue declines across all its segments except for Consumer & Community Banking. In the Consumer & Community Banking segment, revenues benefited from higher net interest income on higher deposit and card margins and balance growth. Revenues in the Asset & Wealth Management segment were negatively impacted by lower market levels.
Banking stocks have faced pressures from a slowing economy, market volatility and the trade war. On Monday, JPMorgan’s rival Citigroup (C) reported fourth quarter results, beating earnings estimates but missing on revenues.