...Dominant Domestic Franchise: JPMorgan Chase & Co.'s (JPM) ratings reflect its peer- superior earnings capacity, given its leading domestic franchise and strong international presence, unmatched funding flexibility, strong liquidity profile, solid capital ratios and experienced management team. Record Earnings in 2016: The firm had another solid year on a core basis in 2016. Fitch estimates that pretax earnings were up about 4.2% year over year, adjusting for legal expenses and other non-recurring items of note, as lower non-interest expense and higher net interest income more than offset lower non-interest revenue and higher provision expenses. JPM's revenue will benefit from higher interest rates in 2017, but an increase in adjusted expenses and rising consumer credit costs are expected to be headwinds. Consumer Credit Normalizing: Consumer asset quality trends began to weaken in 2016, with credit card losses being impacted by the seasoning of portfolio growth and auto loans facing declines...
