Big legal costs dent JPMorgan's profits

JPMorgan Chase Wednesday reported a dip in fourth-quarter earnings as hefty legal expenses once again weighed on results.
Quarterly earnings at the biggest US bank by assets fell 6.6 percent from the year-ago period to $4.9 billion. Quarterly revenues dropped 2.8 percent to $22.51 billion.
The bank recorded a $990 million charge for legal expenses. JPMorgan in October was fined about $78 million by the European Commission for rigging interest rates.
The bank has also acknowledged a criminal probe by US prosecutors into its foreign exchange business. JPMorgan reached a settlement in a class-action suit over its forex trades, a source told AFP earlier this month.
Hefty legal charges have weighed on earnings over the last few years, even pushing JPMorgan to a rare loss in the October 2013 quarter.
JPMorgan's biggest division, consumer and community banking, saw earnings drop about 11 percent to $2.2 billion, in part due to higher provisions for credit losses in some segments.
Corporate and investment banking earnings rose 3.3 percent to $972 million as strong debt underwriting fees offset declines in equity underwriting fees.
Annual earnings came in at a record $21.8 billion, up 21.4 percent from 2013's profits.
"Our businesses continue to demonstrate strong momentum and expense discipline," said chief executive Jamie Dimon.
"Each of our businesses and the company are very well positioned going into 2015 for long-term growth and success."
The quarterly results translated into earnings per share of $1.19, below the $1.31 projected by analysts.
JPMorgan shares fell 1.6 percent to $57.90 in pre-market trade.