JPMorgan’s Record Profit Comes With Warning That Risk Isn’t Gone

  • Net income surges 42% on trading gain, reserve releases
  • Vaccine, stimulus led to lowering credit reserve, Dimon says
Photographer: Michael Nagle/Bloomberg
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JPMorgan Chase & Co. made more money in the fourth quarter than it ever has, as it signaled more optimism about borrowers being able to repay their loans and the pandemic-fueled trading surge continued.

The biggest U.S. bank postedBloomberg Terminal a jump in trading and investment-banking fees that helped its Wall Street unit close out its most profitable year ever. The bank also released loan-loss reserves for the second quarter in a row, a sign that defaults won’t take as big a toll as previously expected.