JPMorgan Chase (NYSE: JPM) reported Friday that the investment bank’s profit rose more than four-fold to $3.29 billion in their fiscal fourth quarter, according to Associated Press.
However, investors were not pleased with the company’s decision not to raise its 5 cent dividend, causing the shares to drop on Friday.
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In October, the company released their third-quarter results, stating that they would consider raising their dividend when loan losses stabilize and the company's credit costs fall.
JPMorgan Chase lost $306 million during the fourth quarter in its credit card services business and it is expected that this number would remain high in 2010.
Despite not raising the dividend, JPMorgan Chase instead gave large bonuses to its employees for 2009. The company said its total payroll costs, including salaries, bonuses and benefits, rose 18 percent in 2009, although the company cut its work force by 1 percent during the year.
The average compensation per employee rose to $121,124 in 2009 from $101,110 a year earlier. The average compensation in the investment banking division was about $380,000.
The bank's total revenue fell below expectations, which also affected its stock price Friday. JPMorgan Chase had $25.24 billion in revenue on a managed basis, which excludes certain items such as the effect of packaging and selling pools of credit card debt. Analysts predicted JPMorgan Chase would generate $26.8 billion in revenue.
JPMorgan Chase earned $1.9 billion in its investment banking division, while its asset management division generated $424 million in net income.
Debt underwriting fees rose 58 percent to $732 million from the same quarter a year earlier, while stock underwriting fees climbed 66 percent to $549 million.
JPMorgan Chase set aside $7.28 billion for loan losses, essentially the same as it did during the quarter a year earlier, but 10 percent lower than the third quarter.
JPMorgan Chase earned 74 cents per share, easily topping analysts’ expectations of 61 cents, according to Thomson Reuters.
For the full year, JPMorgan Chase earned $11.7 billion, or $2.26 per share on record managed revenue of $108.6 billion. The bank earned $5.6 billion, or $1.35 per share in 2008.
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