JPMorgan beats, profits jump 35%

JPMorgan Chase announced first-quarter results Friday morning, posting earnings of $US2.37 a share. Analysts had expected earnings of $US2.28.

The beat was driven by gains across every key business line, with higher interest rates benefitting most of the bank’s businesses. Here are the key numbers:

  • Revenue: $US27.9 billion, up 10% from last year.
  • Adjusted net income: $US8.7 billion, up 35% from last year.
  • Adjustments: The results included a $US505 million gain “related to the adoption of new recognition and measurement accounting guidance for certain equity investments previously held at cost.” That added $US0.11 a share to earnings.
  • Consumer and community banking: Net income increased 67% to $US3.3 billion, on revenue of $US12.6 billion, as the bank benefitted from higher rates.
  • Corporate and investment banking: Net income was up 23% to $US4 billion, on revenue of $US10.5 billion. That was in part driven by accounting adjustments in the markets business. Excluding those gains, markets revenue was up 7%. Banking revenue fell slightly, down 3%.
  • Commercial banking: Net income was up 28% to $US1 billion, driven by higher net interest income.
  • Asset and wealth management: Net income was $US770 million, up 100% from a weak period a year earlier.

“2018 is off to a good start with our businesses performing well across the board, driving strong top-line growth and building on the momentum from last year,” JPMorgan CEO Jamie Dimon said in a statement.

The fourth-quarter of 2017, by comparison, was noisy and uneven thanks in part to the new tax law, which caused many banks to book one-time losses on repatriated cash and deferred tax assets that declined in value.

JPMorgan took a $US2.4 billion hit from the new law last quarter.

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