Tags: jpmorgan chase | earnings | profit

JPMorgan's Profit Rises 6% on Interest Income Strength

JPMorgan's Profit Rises 6% on Interest Income Strength
(AP)

Friday, 12 April 2024 07:10 AM EDT

JPMorgan Chase's profit rose in the first quarter as it earned more from interest payments, the bank said Friday.

The biggest U.S. lender's profit was $13.42 billion, or $4.44 per share, for the three months ended March 31. That is up 6.3% from $12.62 billion, or $4.10 per share, a year earlier.

"Many economic indicators continue to be favorable. However, looking ahead, we remain alert to a number of significant uncertain forces," CEO Jamie Dimon said, noting geopolitical tensions and persistent inflation.

Despite growing optimism in the last several months about a soft landing for the economy, Dimon has called for caution, citing persistent inflation, deficit spending and military conflicts.

Shares of the bank fell nearly 4% in trading before the bell.

Rising U.S. interest rates have helped lenders to boost net interest income (NII), or the difference between what banks earn on loans and pay out for deposits.

JPMorgan also added billions of dollars of loans to its balance sheet after acquiring failed First Republic Bank in May last year. The purchase also fueled JPMorgan's interest income.

NII rose 11% to $23.2 billion. Excluding the impact of First Republic, it was still 5% higher than last year.

It set aside $1.88 billion as provisions for credit losses, compared with $2.28 billion last year.

Trading revenue at JPMorgan declined 5% to $8 billion, with revenue from fixed income, currency and commodities (FICC) dropping 7% and equities flat.

Investment banking revenue gained 27% to $2 billion, driven by higher fees earned on debt and stock underwriting.

Overall revenue rose 9% to $41.93 billion.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
JPMorgan Chase's profit rose in the first quarter as it earned more from interest payments, the bank said Friday.
jpmorgan chase, earnings, profit
262
2024-10-12
Friday, 12 April 2024 07:10 AM
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