By Niket Nishant and Nupur Anand
(Reuters) – JPMorgan Chase (NYSE:)’s annual profit rose to a record as its dealmakers and traders reaped a windfall from rebounding markets in the fourth quarter, it reported on Wednesday.
The largest U.S. bank also forecast its net interest income, or the difference between what it earns on loans and pays out on deposits, would rise above analysts’ expectations this year, despite repeated warnings that high NII growth was unsustainable.
JPMorgan’s strong results bode well for the banking sector, which is seeing a revival in dealmaking and fundraising activities as the U.S. Federal Reserve cuts interest rates to bolster the economy. Goldman Sachs’ profit also jumped after a bumper quarter for its investment bankers and traders.
“The U.S. economy has been resilient,” JPMorgan’s CEO Jamie Dimon said, citing low unemployment and healthy consumer spending.
“Businesses are more optimistic about the…
