Full year Chase 2018 earnings highlight the growing strength of its retail banking unit.

Net income at JPMorgan Chase’s retail focused Consumer & Community Banking unit soar by 58% to $14.9bn for fiscal 2019.

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Group wide, JPMorgan Chase 2018 net income rises 33% year-on-year to $32.5bn from $24.4bn.

In 2018, retail banking accounts for 46% of group profits. In 2017 the corresponding figure was 38%.

Chase 2018 earnings: retail banking highlights

In Q4, Chase retail banking net income is up by 53% to $4.0 bn. Net revenue was $13.7bn, an increase of 13%.

Chase is benefitting from higher net interest income on higher deposit and card margins. In particular, Chase deposit margin rose by 49 basis points to 2.55% from the year ago quarter.

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Other retail banking highlights include:

  • Average loans up 2% and core loans up 5% YoY;
  • Average deposits up 3% YoY;
  • Active mobile customers up 11% YoY to 33.3 million;
  • Client investment assets up 3% YoY
  • Credit card sales up 10% YoY, and
  • Merchant processing volume up 17% YoY.

Jamie Dimon, Chairman and CEO, comments: “2018 was another strong year for JPMorgan Chase. The firm generated record revenue and net income even without the impact of tax reform. Each line of business grew revenue and net income for the year.

“We grew core loans 7%, in-line with our expectations, while maintaining credit discipline.”

He adds:” In the fourth quarter we opened Chase branches in new states for the first time in nearly a decade. While it is early days, we’re seeing terrific results so far.”

Chase 2018 earnings: less positive metrics

In Q4, provision for credit losses increased to $1.55bn against $948m in Q3 and $1.31bn in the year-ago quarter.

Dimon is also setting aside $250m more for credit losses than analysts had expected.

In Q4, Chase missed analyst forecasts for the first time in 15 quarters.

In particular, JPMorgan’s trading division missed its numbers with fixed-income trading producing revenue of $1.9bn against $2.2bn forecast.

Despite missing analyst estimates in Q4, underlying net income still increased by 34% to $7.1bn.