JPMorgan Chase (JPM) reported a record $19 billion profit, or $4.48 per share in 2011, a 9% increase from the year before, but bank stocks declined Friday as the banking giant's fourth-quarter earnings declined 23%. JPMorgan earned $3.7 billion, or 90 cents per share, in the fourth quarter. Total revenue for the three months ended Dec. 31 fell 17% to $21.4 billion. Revenue for the year dipped as well to $97.2 billion from more than $102 billion in 2010. Chase recorded a $567 million loss during the quarter from an accounting adjustment due to tightening CDS spreads. In the third quarter, the adjustments provided a boost to earnings. Investment banking earnings of $762 million were down 52% in the fourth quarter. The company's mortgage division lost $258 million in the fourth quarter, compared to income of $330 million in the same period a year earlier. The bank reported $390 million in losses during the quarter from representation and warranty claims on soured mortgages, up from $349 million the year before. Chase said the acceleration stemmed from increase demands from Fannie Mae and Freddie Mac. Chase wrote $38.6 billion in new mortgages during the fourth quarter, down 24% from the same period the year before. However, production was up 5% from the third quarter. The bank also lost $586 million from its servicing division, compared to roughly $14 million in income one year ago. The drop was due mainly to declining mortgage servicing rights and fewer third-party loans. Write to Jon Prior. Follow him on Twitter @JonAPrior.