JPMorgan Chase reported record first-quarter profit on Friday, buoyed by higher interest rates and gains in the bank’s debt underwriting business.
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The largest bank in the U.S. said in its release that profit rose by 5 percent to $9.18 billion, or $2.65 per share, in the first quarter, beating analyst expectations of $2.35 per share. That’s up from $8.71 billion, or $2.37 per share, in the year-ago period.
"We had record revenue and net income, strong performance across each of our major businesses and a more constructive environment," CEO Jamie Dimon said in a statement. "Even amid some global geopolitical uncertainty, the U.S. economy continues to grow, employment and wages are going up, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong.”
JPMorgan is the first major lender to report its quarterly earnings. Wells Fargo, the fourth biggest bank in the U.S. by assets, will post its earnings later on Friday.
Net interest income climbed 8 percent to $14.60 billion, predominantly boosted by higher rates at the Federal Reserve. Non-net interest remained relatively steady, up 1 percent.
The U.S. central bank raised the interbank lending rate for the fourth time during its December meeting. The fact that JPMorgan benefitted from that could alleviate some concerns about the sector after policymakers approved a largely patient approach to monetary policy in the year ahead.