JPMorgan Chase reported net income of $3.7 billion for the fourth quarter of 2011, compared with $4.8 billion for the fourth quarter of 2010. The bank said the decrease in earnings was driven by a $4.5 billion, or 17%, drop in net revenue, largely offset by lower non-interest expense and a lower provision for credit losses of $859 million.

The bank said full-year 2011 net income was a record $19 billion, compared with $17.4 billion for the prior year.

Jamie Dimon, chairman and chief executive officer said, “As the economy continues to recover, we are gratified to see signs of improvement in loan demand and credit quality. Commercial banking had its sixth consecutive quarter of loan growth, including a 17% increase in middle-market loans over the prior year. Business banking loans were up 5% over the prior year reflecting a 24% increase in origination volume during 2011.”

Dimon added, “Firmwide, net charge-offs were $2.9 billion in the fourth quarter, down 43% compared with the prior year, and non-performing assets declined by 33%. Mortgage net charge-offs and delinquencies modestly improved, but both remained at elevated levels. With respect to our credit card portfolio, the net charge-off rate1 improved to 3.93%, down from 4.34% in the prior quarter and 7.08% in the prior year. Wholesale credit performance remained stable.”

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