JPMorgan shares drop on disappointing earnings

JPMorgan Chase (JPM), the biggest U.S. bank by assets, saw its shares tumble more than 4% Wednesday after the banking giant reported disappointing fourth quarter earnings.

The bank said it earned $4.93 billion, or $1.19 a share, for the three-month period ending in December. That compares with a profit of $5.28 billion, or $1.30 a share, a year ago.

The results include legal expenses of $990 million.

Net revenue declined 3% to $22.5 billion.

Analysts surveyed by FactSet were expecting, on average, earnings per share of $1.31 and revenue of $23.6 billion. Net interest income was up 2% to $11.3 billion, which matched analyst forecasts.

Average total deposits rose 8% to $497.7 billion, while mortgage originations declined 1%. The stock has lost 6% so far this year, while the Dow has slipped 1.2%

Net income for full-year 2014 was a record $21.8 billion, compared with $17.9 billion in the prior year. Earnings per share were $5.29 for 2014, also a record, compared with $4.35 for 2013. Revenue for 2014 was $94.2 billion, down 2% compared with 2013 revenue of $96.6 billion.

It's a big week for bank stocks. JPMorgan Chase and Wells Fargo report earnings Wednesday, followed by Bank of America and Citigroup on Thursday and Goldman Sachs Friday. The earnings announcements come at a pivotal time for banks, given their recent underperformance and the elevated volatility of the broader U.S. stock market.

JPMorgan shares were down $2.66 to $56.19.