Jan 13 (Reuters) – JPMorgan Chase’s profit fell in the fourth quarter as it took a one-time charge tied to its agreement with Goldman Sachs to take over a credit card partnership with Apple.
Profit fell to $13 billion, or $4.63 per share, in the three months ended December 31, JPMorgan reported on Tuesday. That compares with $14 billion, or $4.81 per share, a year earlier.
Earlier this month, JPMorgan and Apple struck a deal under which the bank became the new issuer of the iPhone maker’s card.
The deal would strengthen JPMorgan’s foothold in credit cards and add to a long list of strategic wins for CEO Jamie Dimon, who has turned the bank into a leading player across retail and investment banking.
The bank had said it expects to record a $2.2 billion provision for credit losses in the fourth quarter tied to the portfolio.
The deal comes at a critical juncture for the credit card industry, which could face a sharp shift if a proposal by U.S. President Donald Trump to cap interest rates at 10% moves forward. While Trump has said he expects companies to comply by January 20, Wall Street analysts remain doubtful the measure can be implemented without congressional approval.
A banking industry body warned last week that the move could tighten access to credit for consumers and small businesses and drive borrowers toward unregulated lenders.
Excluding the one-time charge, JPMorgan’s quarterly profit increased to $14.7 billion, or $5.23 per share, fueled by trading.
(Reporting by Manya Saini in Bengaluru and Saeed Azhar in New York, editing by Lananh Nguyen and Sriraj Kalluvila)
