JPMorgan's Credit Card Ambitions: A Stride Amid Economic Uncertainty

JPMorgan Chase reported a drop in fourth-quarter profit due to a one-time charge from a deal with Goldman Sachs related to its Apple credit card takeover. Excluding this charge, profits rose, driven by trading. CEO Jamie Dimon highlights the U.S. economy's resilience amid volatile markets and potential regulatory shifts.

JPMorgan Chase experienced a decline in fourth-quarter profit, primarily due to a one-time charge associated with an agreement to assume responsibility for a credit card partnership with Apple. This strategic move aims to bolster JPMorgan's presence in the credit card sector, representing yet another strategic win for CEO Jamie Dimon.

Despite the charge, JPMorgan's quarterly profit saw an increase when adjusted, reaching $14.7 billion, buoyed by a strong performance in trading. Shares of the bank climbed 1.5% pre-market. Jamie Dimon expressed optimism about the U.S. economy's resilience, noting steady consumer spending and broadly stable business conditions.

The bank's expansion in the credit card domain comes amid economic uncertainties, including a potential regulatory cap on interest rates proposed by former U.S. President Donald Trump. The proposal has sparked concerns among analysts and industry bodies regarding market impacts, with caution persisting in equity and bond markets.

(With inputs from agencies.)