JPMorgan Chase, the country's largest bank, continues to generate strong earnings and a rising stock price, despite the total of $20 billion in penalties imposed on it by the government.

The latest fine was a $1.7 billion sanction levied on the bank Tuesday for neglecting to inform the government of Bernard Madoff's suspicious activities. The Ponzi schemer was a customer of the bank. In addition, JPMorgan will pay another $350 million to settle with the U.S. Office of the Comptroller of the Currency.

Still, Wall Street analysts forecast JPMorgan will garner up to $23 billion in profits in 2014, beating all other banks, The New York Times reports. Its stock price has jumped 29 percent over the last year.

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JPMorgan shares traded at $58.77 midday Wednesday.

"The fines have been manageable in the context of the bank’s earnings capacity," Jason Goldberg, a bank analyst at Barclays, tells The Times. "It makes $25 billion in revenue per quarter and has record capital."

JPMorgan prepared itself for the penalties, which included $13 billion for mishandling mortgage securities, by building up its legal reserves in recent years.

As of the third quarter of 2013, JPMorgan had allocated $28 billion to its legal reserves, Goldberg calculates, according to The Times.

The fine related to Madoff hasn't soured Morningstar analyst Jim Sinegal's view of the bank. "We think this incident is merely one of many that illustrate the difficulties of successfully managing a complex global financial institution," he writes on Morningstar.com.

"For better or worse, we still believe JPMorgan is among the better-run money center banks."

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