Updated at 8:00 AM EST

JPMorgan Chase  (JPM) – Get Free Report posted weaker-than-expected fourth-quarter earnings Friday thanks in part to a $3 billion payment it made to the Federal Deposit Insurance Corporation to pay for the rescues of several regional banks last spring. 

JPMorgan said earnings for the three months ended in December were $9.3 billion, or $3.06 a share, down 14.3% from the year-earlier period and well shy of the Wall Street consensus forecast of $3.32 per share. 

The bank’s $3 billion ‘Special Assessment’ FDIC payout, however, trimmed 74 cents from its overall bottom line, which would have otherwise topped Street forecasts. 

Reported revenue, JPMorgan said, rose 8.4% to $38.57 billion, again missing analysts’ estimates of a $39.78 billion tally. Managed revenues, however, were up 12.3% at $39.94 billion, topping Street forecasts. 

Net interest income also impressed, rising 19% to a record $24.2 billion a result of the higher-interest-rate environment, offsetting a slump in global dealmaking fees amid a dearth of new listings and takeovers so far this year.

Merger activity slumped to the lowest levels in a decade last year, with overall volumes down 18% from 2022 levels, according to LSEG data, with around $3 trillion in deals completed. In the U.S. overall deals fell 8% to around $1.42 trillion.

“The U.S. economy continues to be resilient, with consumers still spending, and markets currently expect a soft landing. It is important to note that the economy is being fueled by large amounts of government deficit spending and past stimulus,” said CEO Jamie Dimon. 

“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 health care costs,” he added. “This may lead inflation to be stickier and rates to be higher than markets expect,” he added. 

“And the ongoing wars in Ukraine and the Middle East have the potential to disrupt energy and food markets, migration, and military and economic relationships, in addition to their dreadful human cost,” Dimon said. “These significant and somewhat unprecedented forces cause us to remain cautious.”

JP Morgan shares were marked 2.15% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $173.94 each.

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