(Reuters) -JPMorgan Chase’s profit fell in the fourth quarter as the lender set aside nearly $3 billion to help refill a government deposit insurance fund.
JPMorgan and several major banks are required to pay a bulk of the $16 billion to replenish the Federal Deposit Insurance Corporation’s deposit insurance fund (DIF), which was drained after Silicon Valley Bank and Signature Bank failed last year.
The bank, however, reported a record annual profit of $49.6 billion.
CEO Jamie Dimon said the U.S. economy continued to be resilient and markets were expecting a soft landing, but sounded a note of caution on inflation.
“There is also an ongoing need for increased spending due to the green economy, the restructuring of global supply chains, higher military spending and rising healthcare costs. This may lead inflation to be stickier and rates to be higher than markets expect,” Dimon said.
Profit for the fourth quarter was $9.31 billion, or $3.04 per share, for the three months ended Dec. 31, the bank said on Friday. That compares with $11.01 billion, or $3.57 per share, a year earlier.
The bank reported a 12% jump in revenue to $38.57 billion.
(Reporting by Niket Nishant in Bengaluru and Nupur Anand in New York; Editing by Lananh Nguyen and Saumyadeb Chakrabarty)
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