Reuters

(Reuters)

JPMorgan's 1Q Profit Tops Views, Shares Rise

By Features FOXBusiness

In a bullish kickoff to the banking sector’s earnings season, Wall Street heavyweight JPMorgan Chase (JPM) revealed on Wednesday a stronger-than-expected 67% surge in first-quarter profits amid the improving credit picture.

Continue Reading Below

The upbeat results from Jamie Dimon’s JPMorgan led to early buying in shares of other big banks, including Bank of America (BAC) and Goldman Sachs (GS).

New York-based JPMorgan said it earned $5.56 billion, or $1.28 a share, last quarter, compared with a profit of $3.33 billion, or 74 cents a share, a year earlier. Analysts had been calling for EPS of just $1.16.

Adjusted-revenue declined 8.5% to $25.79 billion, barely surpassing the Street’s view of $25.27 billion.

“These results partially benefited from improved credit trends in our credit card and wholesale businesses,” CEO Dimon said in a statement. “As we look toward the future, we see incredible opportunities for the company, which our teams around the world are aggressively pursuing.”

JPMorgan, which recently increased its annual dividend to $1.00 a share, said credit-loss provisions tumbled to $1.17 billion from $7.01 billion a year earlier and $3.04 billion the prior quarter.

Continue Reading Below

Profits at JPMorgan’s credit card unit hit $1.34 billion, compared with a loss of $303 million the year before.

As is usually the case, JPMorgan is the first big-name financial company to report quarterly results for this earnings season. The bullish tone stands in contrast to the negative one set on Monday by aluminum maker Alcoa (AA), which traditionally is the first major company overall to release results.

Shares of JPMorgan gained 1.33% to $47.26 ahead of Wednesday’s open. The stock had been up nearly 10% on the year as of Tuesday’s close.