JP Morgan posts $143m loss tied to Poundland owner Steinhoff

JP Morgan has reported an increase in revenue for the fourth quarter of 2017, but posted a huge loss on a loan to a single customer in its equity markets business.

The company said it recorded a $143m (£105m) loss on a margin loan to a single client of its corporate and investment bank, but did not name the client.

However, Poundland owner Steinhoff has been named as the customer in question by various media outlets citing sources close to the matter. Steinhoff announced at the end of last year that it would need to reissue its financial figures for 2016 due to accounting irregularities. The group’s share price plummeted by as much as 90 per cent, and chairman Christo Weise stepped down from the board.

JP Morgan also reported five per cent increase in revenue, year-on-year, in the final quarter of last year. Revenue rose to $25.5bn from $24.3bn.

Chief exec Jamie Dimon said the lender had “maintained its fortress balance sheet, discipline and client focus”.

“Operating from this position of strength allowed us to extend credit and raise capital of $2.3 trillion for U.S. consumers, businesses and institutional clients, while returning $22bn to shareholders,” he said.

Dimon added that the enactment of tax reform in the fourth quarter was a “significant positive outcome for the country”.

“US companies will be more competitive globally, which will ultimately benefit all Americans. The cumulative effect of retained and reinvested capital in the US will help grow the economy, ultimately growing jobs and wages,” he continued.

“We have always invested, even in difficult times, in our employees, customers and communities, and as a result of the tax plan we will be increasing and accelerating some of these investments”